How Long Will it Ruin My Credit If I File for Bankruptcy?

While bankruptcy cases potentially offer much-needed financial relief to struggling Americans, one of its most significant disadvantages is the negative credit reporting that results from filing a case, notes the book "How to File for Chapter 7 Bankruptcy."

Time Frame

A Chapter 7 bankruptcy case is reported for 10 years from the date of filing. Chapter 13 cases are noted on your credit reports for seven years from the date of filing, notes the credit reporting agency Experian.

Effects

Some lenders will not issue credit cards or even secured loans to people who have a bankruptcy filing noted on their credit reports, warns the book "How to File for Chapter 7 Bankruptcy." Lenders who work with post-bankruptcy debtors may charge higher interest rates or require down payments to secure loans.

Considerations

Even if your bankruptcy case is ultimately denied, the fact that you petitioned for bankruptcy is still a negative credit event that will report for the federally-mandated seven- to 10-year time frame, warns the book "How to File for Chapter 7 Bankruptcy."

References

• "How to File for Chapter 7 Bankruptcy"; Stephen Elias, Albin Renauer and Robin Leonard; 2009
• Experian: Frequently Asked Credit Dispute Questions