Whether you file a Chapter 7 Learn More about Chapter 7 or a Chapter 13 Learn More about Chapter 13 either type of bankruptcy will stay on your credit report for 10 years. Nevertheless, filing either type of bankruptcy with a Chicago Bankruptcy attorney like us may help your credit score more than not filing a bankruptcy. One of the biggest reasons most people wait to file a bankruptcy is that they perceive that their credit will be destroyed forever and that they will not gain access to new credit. See Common Bankruptcy Myths However, with either type of bankruptcy if you are in default on your bills prior to filing your credit score is hurt each month by the defaults. Your credit score will drop each month by any negative or derogatory reporting by a creditor on your credit report. If you have missed a payment on a mortgage or missed payments or been late on bills your credit score will drop each month.
Further, if you have a high debt to income ratio then your credit score will be impacted and any creditor will take that into consideration on whether to grant any new credit to you. However, by filing a bankruptcy and eliminating any future negative reporting and eliminating debt creditors will view any new extensions of credit as a new foundation to build upon.

Often a potential client or client will ask how long before I get credit card offers or a home loan. Generally speaking a credit card can be had after the time of discharge or a few months after, same thing goes for a car loan. Purchasing a home usually takes around two years after the discharge. What matters most is what you do after the discharge. It is good to keep in mind that if your bills are in collections or you are behind on your bills your credit score is being hurt every month that you wait. If you are considering bankruptcy contact me I am an expererienced Chicago Bankruptcy Attorney so what are you waiting for call me at 312-489-8182!

Marc Wagman