The Attorneys Of Stewart Sorice Farrell Finoli And Cavanaugh LLC

Personal bankruptcy does not have to impact one’s credit for long

On Behalf of | May 24, 2018 | Personal Bankruptcy |

Many consumers in Pennsylvania and elsewhere find themselves trapped in overwhelming debt, which can be confusing and frightening. However, filing for personal bankruptcy may offer these consumers the relief they need. Here is a look at the bankruptcy filing process and how it affects a person’s credit — one of the main concerns people have when it comes to seeking bankruptcy protection. The reality is that it does not have to affect a consumer’s credit for long.

Two types of personal bankruptcy filings can be pursued. The first is Chapter 7 bankruptcy, which involves fully liquidating one’s assets to pay off debts. It takes a decade for a Chapter 7 bankruptcy filing to leave a credit report. Meanwhile, a Chapter 13 bankruptcy filing allows consumers to develop plans for repaying all or some of their debt during a three- to five-year period. A Chapter 13 bankruptcy filing will be removed from a consumer’s credit report after seven years.

A common misconception is that consumers have no choice but to wait seven or 10 years for their bankruptcy filings to be removed from their credit reports. The truth is that these lengths of time are maximum time amounts. In other words, no minimum time amounts exist. Thus, filing disputes with today’s three credit bureaus may enable consumers to get their bankruptcy filings removed from their credit reports before the seven or 10 years are up.

Filing for personal bankruptcy is a complicated, multi-step process. However, it can be the quickest way for consumers to achieving desperately needed financial freedom and peace. An attorney in Pennsylvania can walk consumers through the filing process, making sure that their rights are protected from start to finish.

Source:, “When Can I Get a Bankruptcy Off My Credit Report?“, Gerri Detweiler, May 21, 2018