Bankruptcy and Credit Reports
Will the fact that I filed bankruptcy appear on credit reports?
The bankruptcy is treated as judgment and will be listed in credit reports for a period of up to 10 years.
After bankruptcy, can I obtain new credit?
Yes. The decision of whether to extend you credit belongs to each particular lender. However, the fact that you filed bankruptcy, if properly explained, is less damaging than a history of unpaid accounts.
How can I re-establish my credit rating after bankruptcy?
When you file a bankruptcy petition, your creditors are automatically barred from taking any action to collect the debts owed them or seizing your property. The relevant statute, 11 U.S.C. sec. 362, does provide some exceptions. For example, a bankruptcy petition does not stay the commencement or continuation of a criminal action (unless brought to collect a debt), an action to collect alimony, maintenance or support from certain assets or income, or an action to enforce a government's police or regulatory power.
In some states, an action taken in violation of the automatic stay is void. In other states it is voidable and the debtor must obtain a court order undoing the action.
How can I learn more about bankruptcy?
The best way is to obtain new credit and make the payments religiously. Sometimes an existing creditor may continue to grant you credit based upon a reaffirmation agreement made during the bankruptcy. You may also be able to obtain a secured credit card, where the credit limit is based upon the amount of security given, or obtain credit using a co-signer. An excellent book on how to rebuild credit after bankruptcy is called Bounce Back from Bankruptcy. It costs $15.95.
What if my question isn't answered here?
Send your question to Law Offices of Paul D. Post, PA using the Feedback page and we will try to help you. Make sure you state where you live. Please keep in mind that we can not provide legal advice over the Internet or answer questions about state law (other than in Kansas).
You may want to contact an attorney. Most bankruptcy attorneys do provide free initial consultations and can provide you with the guidance you need to decide whether to file a bankruptcy petition.