How Many Years Does A Bankruptcy Stay On A Person’s Credit Report?
The bankruptcy could stay on your credit report for seven years. But it won’t have its full negative impact on your credit because hopefully after the bankruptcy is over you will start new credit accounts and keep those in good standing. As time goes on, the negative effects of bankruptcy will diminish well before the seven-year period.
How Does Filing For Bankruptcy Affect A Person’s Credit Score?
This all depends on the credit rating of the debtor at the time of the filing. Most of the time a client’s credit is pretty poor by the time they are filing for bankruptcy. They may have judgments, they may have many accounts in collection so usually, there’s a negative impact on the credit well before the bankruptcy filing. Nevertheless, the credit rating will usually go down until the bankruptcy case is over and a person starts to develop new credit history with positive ratings.
Will I Have To Pay Income Taxes On Debt Discharged In My Bankruptcy?
If a debt is canceled absent a bankruptcy filing the creditor usually is issues what’s called a 1099C, cancellation of debt income. This income would generally have to be included on the person’s tax return as income and taxes would have to be paid on it. If the debt is discharged in bankruptcy no 1099C will issue and there is no negative impact or income impact on a person’s tax return for the bankruptcy filing.
How Long After Filing For Bankruptcy, Before I Might Qualify For A Mortgage?
I have seen people file for bankruptcy and then be able to get a mortgage to buy a house between 2 1/2 to 3 1/2 years after the bankruptcy filing. Of course, this depends on the person obtaining new credit and maintaining those accounts in good standing.
Will Having A Bankruptcy On My Record Affect My Job Opportunities?
This depends on the potential employer. More and more employers are looking at other public information such as credit reports and social media determined to determine if a candidate is a good fit for a particular job.
In General, How Soon Can A Person Finance A Car After Going Through A Bankruptcy?
I have seen people obtain car loans anywhere between one and a half to three years after a bankruptcy filing. This depends on the person obtaining new credit in keeping those accounts in good standing during that time.
What Are Some Of The Last Steps That I Need To Take To Finish my Bankruptcy?
The last step a person needs to complete to obtain a discharge is completing a debtor education course. This is similar to the pre-filing course but it’s a little more extensive. There’s generally a little test at the end but it’s not too difficult and not that time-consuming and does not pose a major problem for any of my clients.
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