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Bankruptcy Myth: 7 Years Bad Credit

One pervasive myth about bankruptcy that I have heard a lot here in South Jersey is that you will have bad credit for seven years if you file. I tell clients that filing bankruptcy is not like breaking a mirror; you don't automatically get seven years of bad credit!

To some extent this comes from a misunderstanding of the federal credit reporting rules that state that certain debts in default can only be on your credit for seven years before they have to be removed. This does not mean that you will not get credit for this period of time, however. There are lots of things that you can do to rebuild your scores.

In actuality, you will most likely encounter difficulty getting credit for two to three years, depending on how proactive you are in repairing the damage caused by the bankruptcy and the debt problems you had that led up to it.  For more information, check out this article.

If you live in South Jersey and are considering filing bankruptcy, call my office at 856-432-4113 or contact me through this site for a free consultation to discuss your case.

If you are looking for more information about bankruptcy, then download my free book,Top Questions People Ask About Filing Bankruptcy in New Jersey.

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Steven J. Richardson
Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.