As people continue to face financial hardships in the midst of a rough economy, many have turned to the personal bankruptcy process to set things straight. Although bankruptcy is just one of many methods that can be used to address insurmountable debt, it’s become quite popular because it allows debtors to completely eliminate their debts while putting an immediate stoppage to harassing calls from creditors. While filing bankruptcy comes with many benefits, there are some downsides that simply cannot be overlooked.

One of the most common questions asked by would-be filers and by those who have already filed has to do with how long a bankruptcy will stay on their credit report. The reason for the question is simple – people know that having a bankruptcy on their credit report will make it more challenging to get a loan, to secure employment and even to rent a home. So, how long is bankruptcy on credit report? A Chapter 7 bankruptcy will remain on your credit report for up to 10 years, though possibly as little as 7 years depending on the agency.

To be certain, 10 years is a long time to wait for that new home or the chance at employment, though there are certain things you can do in the meantime that can positively impact your credit rating. After filing and particularly after the 10 year “waiting” period has elapsed, it’s critical that you keep a close eye on your credit report to ensure that it reflects reality. Claiming bankruptcy is a massive undertaking and it’s not uncommon for certain debts to remain on your credit report long after the filing has been solidified. You should contact your credit agency directly if something doesn’t look right. Be sure to check all three of the major credit bureaus – Equifax, TransUnion and Experian. In addition to monitoring your credit report for potential errors, it’s more important than ever to stay current on your bills. Your credit score will only improve if you demonstrate that you can handle your finances in a responsible way, and any shortcomings are sure to result in a further downgrade.

Remember that it will likely take several years for your credit score to rebound from bankruptcy, though it’s important that you begin the process of becoming financially sound before that time has expired. This way you will be ready to tackle whatever might come your way once your bankruptcy is finally removed from your record.

For more information on the personal bankruptcy process and to speak with an attorney who can help you get back on track with your finances, please complete our free bankruptcy evaluation form.