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How long will your bankruptcy record stay on your credit report?

If you are faced with overwhelming financial liabilities in Salem, filing for bankruptcy may be the best form of debt relief available to you. Yet with the ultimate goal being to rebuild your credit profile, you may be wonder exactly how long the record of your bankruptcy will remain on your credit report. A poor credit score can severe limit your ability to borrow money to buy a home or car, and can even keep you from getting a job. Thus, your decision to file for bankruptcy should be made with this in mind.

According to, the record of a Chapter 13 bankruptcy stays on your credit history for 7 years. Because a Chapter 13 requires that you still repay a portion of the debts and liabilities covered under your filing, you are able to enjoy relief from the record of it sooner. A Chapter 7 bankruptcy, on the other hand, remains on your credit profile for 10 years.

Why do lenders and decision-makers care so much about whether or not you have a bankruptcy in your credit history? After all, you should be in a better financial position after filing, and thus have increased credit worthiness, right? Wrong. In fact, statistics have shown that a high number of those who file for bankruptcy once go on to file again. It is this fear of losing money on a potentially bad risk that may drive some financial institutions to be hesitant to lend money or extend credit to you.

However, all is not lost. Even though negative accounts on your credit report will lower your score, their impact is lessened over time. Thus, the farther you get away from the date of your bankruptcy filing, the more financial freedom and flexibility you’ll have. 

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