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Improving a credit report after Chapter 7 bankruptcy is possible

On Behalf of | May 31, 2018 | Chapter 7 Bankruptcy |

One of the most difficult outcomes of filing for personal bankruptcy is the impact on one’s credit report. People in Texas who file for Chapter 7 bankruptcy may wonder what their next steps should be to rebuild credit and regain control of their financial lives. Luckily, there are some steps that can be taken to rebuild one’s financial profile after bankruptcy.

Chapter 7 bankruptcy is one of the two most common types of personal bankruptcy. The other type is Chapter 13. With Chapter 7 bankruptcy, there is no repayment plan and all assets are liquidated. The proceeds of this asset sale is used to cover debts.

Typically, this will stay on a person’s credit report for 10 years after the date of filing. However, people should not resign themselves to this decade-long sentence. While the law specifies this as a maximum amount of time bankruptcy can be on a credit report, the truth is that no minimum exists under the law. An early removal might be obtained by filing a dispute with the three credit bureaus if any inaccuracies are present on the report. A few years of good financial habits can also change the picture lenders get from seeing a credit report.

While filing for Chapter 7 bankruptcy is often a last resort, it does not mean a person cannot rebuild afterwards. Many people with bankruptcy on their credit report still are able to get credit cards and loans from Texas lenders, especially after a few years of good behaviour. Those considering bankruptcy as an option should connect with a lawyer who focuses on this area of the law.

Source:, “When Can I Get a Bankruptcy Off My Credit Report?“, Gerri Detweiler, May 21, 2018