What Effect Can My Bankruptcy Record Have on My Life?

  • Effect of Bankruptcy

What Effect Can My Bankruptcy Record Have on My Life?

A bankruptcy filing is a tough yet necessary decision that people struggling with huge financial debts must make. It may take time to get your debts discharged, depending on the chapter of bankruptcy you’ve filed. While it takes about 3-6 months to get a discharge in a Chapter 7 bankruptcy case, Dallas based bankruptcy law firm Recovery Law Group, informs that a Chapter 13 case continues for 3-5 years’ period before you can get a discharge on remaining unsecured nonpriority debts. However, once you have filed for bankruptcy, the case becomes public record and can be seen by anyone.

Bankruptcy can have a detrimental effect on your credit report. In fact, a bankruptcy stays on your credit report for 10 years. While this may sound a big problem, especially for people who have just filed for bankruptcy or got their bankruptcy discharged in the recent past, there is some relief. Most sites that provide bankruptcy record information are not easily accessible and require paid subscriptions; something which general public will not be willing to do. However, people or institutes with whom you are likely to have business interactions such as bank, prospective employer, lenders, etc. might be interested in viewing your bankruptcy. Sometimes, while applying for a job or seeking a loan, there are questions which specifically ask about any previous bankruptcy. If you file for any loan or credit after bankruptcy your credit report will inform the bank or private lender about your situation. You might still be able to qualify for the loan if improve your credit rating by making regular and timely payments.

Though you might find all this overwhelming, it is important to remember that filing for bankruptcy is important to get rid of huge amounts of debt which you have no means of paying. Additionally, you have no control and legal control over who can and will access your bankruptcy records. What you can do is ensure that you come out of bankruptcy better; by learning how to manage your finances. Eventually, within a couple of years, you might again be eligible for a house mortgage, student loan or car loan. Bankruptcy is meant to be an aid for assisting people with a fresh financial start. For more details about how filing for bankruptcy can help you get out of the difficult financial situation, contact bankruptcy lawyers at 888-297-6023.