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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.

Copyright 1999-2018 Melissa C. Marsh. All Rights Reserved. All Information on this website is subject to a Disclaimer and Use Agreement. This information is provided as general information only and should not be construed as legal advice. We advise you to seek the advice of competent legal counsel to address your own specific questions, facts and circumstances.