Effect Of Bankruptcy On Credit Rating

2009-12-29   minute read

Linda Paul


A bankruptcy will stay on your credit report for six years after you receive your discharge from the bankruptcy (i.e., six years after you finish the bankruptcy).  If you're eligible for a 9 month bankruptcy, that would mean that it would stay on your credit report for 6 years and 9 months (just under 7 years).

Person talking on their cellphone looking over paperwork

Your ability to get credit during that time depends on: what type of credit you're applying for; what kind of information has been added to your credit report after you're discharged from the bankruptcy (if all of the new information is good, that helps you; if it's negative information, that will definitely hurt your chances of getting credit); how long it has been since you were discharged (if you were recently discharged, it will take a while before you would be eligible for most types of credit); and other factors.

Many people who have been through bankruptcy are able to get credit while the bankruptcy is still showing on their credit report.  The fact that it's on there certainly makes it harder to get credit, but it doesn't rule out your ability to obtain credit.

Consultation icon