Public Documents.
A bankruptcy petition is a public record that can be accessed by the court, creditors, and companies that compile information from public records. When a bankruptcy judge grants a discharge, it also becomes a matter of public record. The discharge, as well as any orders or judgments resulting from the bankruptcy case, will be recorded in court records, including online and electronic records. Additionally, the judgment will remain on your credit reports for ten years.
In Bankruptcy, Accounts Are Erased.
Creditors must update accounts included in the bankruptcy to reflect a zero balance and zero past due amount. If the account was past due or charged off prior to the bankruptcy petition, that information may or may not continue to appear. For seven years, any negative information, including ""Included in Bankruptcy,"" will appear on your credit report. You should routinely examine your credit reports to ensure that the accounts are reported accurately.
Will I be Eligible for Credit Following Bankruptcy?
Yes. In fact, once you receive your bankruptcy discharge, you will likely begin receiving new credit applications almost immediately. This is due to the fact that you will have little or no debt and will be unable to discharge new debt for an extended period of time. However, you should approach this initial influx of credit offers with extreme caution. Commonly, these offers will have unfavorable terms, such as low credit limits, high interest rates, and additional charges and fees.
Within about two years, your credit rating will begin to recover, and the bankruptcy itself will weigh less heavily on your credit score than your recent credit history. If you pay your bills on time, particularly your mortgage, you can expect your credit score to reflect this, and you will likely be eligible for credit on market terms as opposed to paying a penalty because you declared bankruptcy.
Contrast with Not Filing for Bankruptcy.
While the effects of filing for bankruptcy are real and substantial, they must be measured against the consequences of not filing. If you do not file for bankruptcy, you must continue making payments to your creditors. If you fail to make timely payments, one or more of these accounts may be reported as delinquent or charged off to credit reporting agencies. The accounts may also be assigned to a collection agency, resulting in the addition of a second negative account or """"tradeline"""" to your credit report. If the creditor chooses to prosecute you, the lawsuit could result in a judgment, which, like the bankruptcy court's judgment, could remain on your credit report for ten years.
Conclusion.
Many parties may want you to assume that you will never qualify for credit again if you declare bankruptcy. This is not the case. A bankruptcy is an important life event that will have a significant impact on your credit for an extended period of time. You will, however, be able to obtain credit on reasonable terms again. Moreover, the alternative to bankruptcy may have equally negative and enduring effects.""
" - https://www.affordablecebu.com/
