There is no doubt that declaring bankruptcy has some long-term effects on your credit score. This is one of the reasons why many people avoid bankruptcy even if they are left with no other options because of their overwhelming financial obligations. So how long is bankruptcy on a credit report?
Typically, your credit report will show a record of a bankruptcy for about 10 years. Like I said before, this could have some negative effects and make it more difficult to obtain credit for all kinds of loans. And when you do get credit, you will most likely have to pay higher interest rates because you are considered a bigger risk.
That’s not to say that you cannot qualify for a loan after bankruptcy, but you may have to wait a while. There are some lenders who target people who recently filed for bankruptcy. This may seem strange at first, but if you think about it really does make sense. That’s because people who successfully declared bankruptcy have had their debts eliminated and now have a clean slate.
Still, you have to be careful about these kinds of loans for two reasons. First of all, they may carry very high interest rates, so they may not be worth it. Secondly, you need to be careful about accumulating debt because that is probably what got you in trouble in the first place.
Having a bankruptcy on your credit report is significant, but that’s not what you should base your decision on. If you’re wondering whether you should declare bankruptcy, you need to look at your other options based on your particular situation. Discuss this with a bankruptcy lawyer and try to get the best information possible. Always look for answers to your questions and not just generic advice that may not be that helpful.