Posted by Wesley Scott on July 28, 2018 at 2:15 PM
Wesley Scott

The impact a Chapter 7 has on your credit reports is a paramount concern for anyone in the United States who is considering filing a Chapter 7 Bankruptcy. There are a lot of misconceptions about how long a Chapter 7 Bankruptcy remains on your credit reports. I have heard everything you can imagine but the single most common misconception is that a Chapter 7 Bankruptcy remains on your credit report for 7 years. Not true.

I can see how people can think it is 7 years though since it is a Chapter 7 Bankruptcy. The reality is a Chapter 7 Bankruptcy remains on your credit reports for a period of 10 years and that is a certainty. A Chapter 7 Bankruptcy goes on your credit report as soon as the case is filed and remains on the reports for period of 10 years. Once the 10 year period expires, the Chapter 7 Bankruptcy notation comes off your credit reports.

Now, please don’t fall into the misconception that because your credit reports show you filed Chapter 7 Bankruptcy for 10 years, you can forget getting credit for 10 years. Can I tell you a secret? Banks don’t care about whether you pay other creditors. Banks do care about are you going to pay them if they lend you money? If you have no debt, do you think they would be willing to lend you money? Oh hell yes- because you have no debt so they feel confident about getting paid. Now, to get better financing terms, try to have a deposit when you obtain the loan. We have clients who finance homes, cars, businesses, and all sort of other financing after a Chapter 7 Bankruptcy often at great interest rates!


When the time is right, or when you are ready, reach out to Minnesota’s HIGHEST GOOGLE REVIEWED bankruptcy law firm at www.kainscott.com. You will be happy you did!

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Topics: Chapter 7 Bankruptcy, Filing Bankruptcy, MN Bankruptcy

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