While a bankruptcy petition may help you escape a financial melt down, you have to be aware of the ramifications. The first and most obvious is that details of your bankruptcy are listed with credit reporting agencies. These details will stay on your credit report for a period of ten years.

You should understand that your credit report is not limited to a simple reference to bankruptcy. Every discharged debt is listed, including the amount, the creditor and the fact it was discharged through bankruptcy. If you undertake the bankruptcy process, after 6-8 weeks, request a copy of your credit report to ensure all the details are listed. This is important if assets were sold and some debts (such as secured debts) are paid in full. Your credit report should show this.

Although this information is only supposed to appear on your credit report for ten years, it is not always automatically removed. After the ten year period has elapsed, request a credit report. If there are still entries related to bankruptcy, contact the credit reporting authority and request its removal. It may take a little while, but most agencies will oblige.

Be careful when applying for credit once you have been discharged from bankruptcy. Credit is difficult to obtain and failed applications will also appear on your credit report. A history of failed applications together with your bankruptcy discharge will compound your ability to obtain credit. Try to rebuild your credit rating slowly.

Consult a bankruptcy lawyer prior to taking that final step as it will have ramifications for at least the next ten years.

Related posts:

  1. Getting A Credit Report Before You File For Bankruptcy
  2. Can You Include Credit Card Debts In Your Petition?
  3. Discharging A Credit Card Debt
  4. Credit Counseling Before And During The Bankruptcy Process