How Will Bankruptcy Affect me in the Future?
Bankruptcy is a powerful remedy which provides you with immediate protection from your creditors, and long-term debt relief. It is important to understand, however, the effects Bankruptcy may have on you in the future.
What about my credit record?
The fact that you filed bankruptcy (either Chapter 7 or Chapter 13) will remain on your credit report for up to ten years. The ten year period starts to run as soon as the case is filed. Information about the debts in your bankruptcy case will remain on your credit report for only seven years.
Does this mean I cannot get credit?
No, it does not. There are no laws which forbid you from obtaining credit after you file and complete a bankruptcy.
The bankruptcy may negatively affect your credit rating, at least for awhile. This means it may be harder for you to get credit, at least at decent interest rates.
Beware of lenders who solicit you after bankruptcy – these may be high-interest, or even predatory lenders. Be very careful about credit – don’t be too eager to rebuild your credit record quickly, or you may wind up right back in financial trouble.
May I be fired because I filed bankruptcy?
It is illegal to fire someone just because he or she filed bankruptcy, and you may wish to seek legal assistance if you believe this has happened to you.
Are other types of discrimination prohibited?
Yes. You cannot be denied a job, or punished on the job (demoted, refused a promotion, etc.), just because you filed bankruptcy. You cannot be denied a license or franchise (or have these taken from you), just because you filed bankruptcy. These laws will not protect you, however, if the employer or agency had other, legitimate reasons to take action against you.
If I file bankruptcy now, can I file a bankruptcy again in the future?
Yes, but there are limits.
Filing a Chapter 7 in the Future
If you have completed a Chapter 7, you may not file another Chapter 7 for eight years. The eight years runs from the date you filed your first case. (If you filed a Chapter 13, but converted it to a Chapter 7, the eight years runs from the date you converted your case).
If you have completed a Chapter 13, you may not file a Chapter 7 for six years, unless certain requirements are met – your attorney will review these with you.
Filing a Chapter 13 in the Future
The filing and completion of a bankruptcy now may limit your ability to get full relief in a Chapter 13 in the future, depending on how much time has passed and the type of bankruptcy (Chapter 7 or 13). Your attorney will review the circumstances and let you know how your rights are affected.
These laws may change in the future, and if they do, the time periods may grow longer.
Are there limits to the total number of bankruptcies a person may file?
No, but your case is likely to be looked at more closely by the Trustee and the Bankruptcy Court if you have filed bankruptcy repeatedly.
Last revised: 7-2003
LSC Code:1010000
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