Two frequent questions from debtors contemplating filing for bankruptcy are one, how long will the bankruptcy be included on their credit report, and two, what will a bankruptcy do to my credit score. The first is easy to answer the second depends on the circumstances. A bankruptcy remains as part of your credit report for 10 years after the date the bankruptcy petition was filed. What happens to your actual credit score depends on the individual debtor. Once a discharge is received, your credit report should indicate a zero balance which eliminates the impact of showing a balance which negatively affects a credit score. Although the bankruptcy will be listed on your credit report, oftentimes the elimination of debt will offset the negative impact of the bankruptcy.

Filing for bankruptcy does not mean you will no longer be able to obtain credit for 10 years. In fact, you will likely receive credit offers immediately after the bankruptcy has concluded because you are no longer a credit risk. In addition to being debt free, you will be unable to obtain another discharge for 8 years. On the flip side, the new credit will likely come with higher than usual interest and annual fees. Although this sounds discouraging, if you are currently behind in payments or only making the minimum payments, you are likely already paying a higher interest rate along with additional fees. Moreover, if you have been unable to keep up with payments, your credit score will have already taken a hit. A number on a credit report should not keep you from considering bankruptcy. As always, you should consult an attorney to discuss the costs and benefits of filing for bankruptcy protection.

- Richard V. Stokan, Jr.