A bankruptcy can be reported on your credit report for ten (10) years after the filing of the case.  If you file a bankruptcy and voluntarily dismiss it before the discharge, the credit reporting agency must report the dismissal as well as the bankruptcy filing on your credit report.  Most individuals who have income become more credit worthy after a bankruptcy than before, since their old debts no longer have a claim on future income.

After the discharge, a debtor is entitled to have the balance of each discharged debt reported as zero on his or her credit report.  The history of delinquencies can be reported, but the balance must be reported as zero.  If it is not so reported, you should dispute the debt.  Negative history on your credit report does not doom you to perpetual credit rejection.  However, it does present a challenge to strengthen your financial situation in the present by saving and using credit carefully, as our firm discussed in this entry at the National Bankruptcy Forum.

If your bankruptcy or discharged debts are not properly described on your credit report, the Fair Credit Reporting Act allows you to challenge the information that you believe is inaccurate.  If the reporting agency cannot verify the accuracy of the information, they must remove it.  If you have received a discharge in bankruptcy, it is in your interest to have the discharge noted on your report, since it is proof that the old debt is no longer legally enforceable.

SEE ALSO:

Has The Biggest Reason Not To File Bankruptcy Already Happened To You?

Rebuild Your Credit

Drew Broaddus