|
Q.How will bankruptcy affect my credit report?
A.Under federal law individuals are entitled to an accurate history of the financial dealings, but not to a rewrite truthful history. That history can properly include delinquencies or bankruptcy, which typically remain on your report for a period 10 years from the date you file for bankruptcy. A bankruptcy discharge will not erase your pre-bankruptcy payment history or discharged creditors. However, after a bankruptcy discharge the amount outstanding for each discharged creditor should be shown as zero.
If you file a bankruptcy and voluntarily dismiss it before the discharge, the credit reporting agency must report not only the original bankruptcy filing, but also the dismissal. If you receive a bankruptcy discharge, it is in your interest to have the discharge noted on your report, for two reasons: first, it is proof that the old debt is no longer legally enforceable; and second, assuming you have income, you should be more credit worthy after a bankruptcy than you were before, since your old debts no longer have a claim on your future income.
|
|
