People having trouble in managing finances often resort to bankruptcy. It is the last solution to deal with excessive debt which is quite difficult to pay back. Despite getting rid of a huge amount of debt, bankruptcy can have a negative effect on your credit rating. People find it difficult to get a loan, credit card, and even job once they have filed for bankruptcy. According to Dallas based bankruptcy law firm Recovery Law Group lawyers, bankruptcy remains on your credit report for a period of seven to ten years (from the date of filing) depending on the chapter of bankruptcy filed.
- In the case of Chapter 7 bankruptcy Dallas, since no debts are repaid, the bankruptcy remains on records for 10 years.
- In Chapter 13 bankruptcy, some amount of debt is repaid over a period of 3-5 years and thus, this type of bankruptcy is deleted after seven years from the filing
- All accounts included in bankruptcy chapters remain on credit report for seven years. Accounts that were delinquent prior to bankruptcy filing will be deleted after seven years from the original delinquency date, while those that were current at the time of bankruptcy filing will be removed, seven years from the filing
It is therefore important for people to regularly check their credit report for any discrepancy. Any account included in the bankruptcy should automatically be deleted after the specified time frame. In case this is not the case, you can ask the credit reporting company to rectify the mistake. Hiring an adept bankruptcy lawyer can be a huge asset for your case. If you wish to consult with one, you can call 888-297-6023.