Filing for bankruptcy is a last ditch effort for individuals who find themselves in very tough financial situations. Bankruptcies filed under Chapter 7 remain in your credit report for ten years while those under Chapter 13 will get reported for a period of seven years from the filing date. Because bankruptcies are public records, they are admittedly one of the hardest things to remove from your credit report.
If you know for a fact that a bankruptcy is indeed yours and that everything about it is in order, the only logical and ethical thing you can do is to ride out the statute of limitations. Although this will really be a dent in your creditworthiness, you can still improve your credit score even with a bankruptcy on your credit record. Make sure that you pay your bills on time—the first two years after your bankruptcy filing are extremely critical. It’s not a good idea to go without credit entirely at this time since you are trying to establish a good credit rating. Instead of getting a credit card, you can get a debit card with your bank which will control spending.
Now it’s a different story if the statute of limitations has passed and you still see your bankruptcy record in your credit report. The credit bureau is supposed to automatically delete bankruptcies after the 7- or 10- year prescription period has elapsed. Dispute this with the credit bureau if it happens.
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