Horrible Things That Happen When You File Bankruptcy

•  
•  
•  
•  
•  
• Footnote on credit report for up to 10 years

The fact that you filed for bankruptcy will be reported as a footnote on your credit report for up to 10 years. That’s the worst thing that happens to you when you file bankruptcy. Filing bankruptcy itself is not factored into your credit score. The score is based upon your income, lines of credit and your ability to make timely payments following filing. Clients who work on rebuilding their credit report to us that their credit scores are over 700 within 18 months of filing. See Re-building Your Credit After Bankruptcy

It is possible that users of credit reports, such as potential employers or residential rental agents, will see the footnote on your credit report. Will they hold it against you? Perhaps. But, a sophisticated user of credit reports should prefer a prospective employee or renter who has filed bankruptcy and has no debt to a prospective employee or renter who is dealing with unmanageable debt.

Like most prospective clients, you probably have been warned by friends or family that filing bankruptcy carries horrible consequences. We encourage you to search the Internet for horrible things that happen when you file. If you find any, let us know.