One of how your credit can improve is for old credit transactions that drag your score down to expire and be removed from your credit report. Having a bankruptcy on your credit report will lower your score and make it very difficult to recover quickly. However, you can recover your credit score with hard work and time.
Bankruptcy effects on credit are not permanent, and even bankruptcy can be removed from your credit report in time. Here is what you need to know about bankruptcy effects on credit and how long you have to keep bankruptcy on credit reports from leading Minnesota bankruptcy lawyers Kain + Henehan.
Transcript:
“Yeah, so a Chapter 7 is going to report on your credit for ten years. It’s a long time. It doesn’t have an effect for the ten years it’s reporting. I usually say it has an effect for about two years or so. That is going to be a period when you’re going to see higher interest rates when you do go to do lending. The longer you can wait to do lending after a bankruptcy, financing a vehicle, a mortgage, taking out a credit card, the lower your interest rate is going to be. For a Chapter 7, it’s going to be reporting for ten years. For a Chapter 13, because you’re making payments, it doesn’t report as long. It reports for seven years for a Chapter 13. For most people, they’re in a Chapter 13 for five years. It’s really just two additional years post-bankruptcy that it’s going to report on credit.”
Get Help With Bankruptcy from Kain + Henehan
As overwhelming as bankruptcy is, you can experience the positive effects of bankruptcy on your credit if you have a plan and stick to it. That’s where having a good bankruptcy lawyer comes in. Kain + Henehan has decades of experience helping people just like you who found themselves in a bad financial position get out of debt. Call (612) 438-8006 or fill out the online form to get help from an experienced Minnesota bankruptcy lawyer to deal with your finances.
