Let me start with the bad news – bankruptcy stays on a credit report for up to 10 years. But keep in mind that a credit report is about a lot more than bankruptcy, and when the bankruptcy process clears your debt, it gives you an opportunity to rebuild instead of being stuck with accounts that have a late balance.
While each credit profile is unique, here is what we generally find:
- Most clients have the opportunity to get better credit scores than when they started bankruptcy within 2 years, particularly if you are proactive in credit building.
- You can get a car almost immediately after bankruptcy (but maybe with rough loan terms), you can get a credit card approximately after a year, and a mortgage after 2 years (however, these timelines vary based on income and other factors).
- We help support the path to credit recovery by reviewing your credit report after the discharge to make sure it is accurate, and by including a subscription to a credit education class after the process is over to help identify opportunities to improve your score.