Real Answers for Life’s Money Challenges
In 2011, I declared Chapter 7 bankruptcy.
Since then, Ive obtained three new credit cards and pay the balance in full.
My credit score is now 742.
How long will the bankruptcy stay on my credit report to hold me back from buying a new home?
Youve managed it responsibly.
This, too, is a myth.
I think you have two questions here: How long will a bankruptcy stay on your credit report?
And will a bankruptcy hold you back from buying a home?
Lets start with how bankruptcy affects your credit.
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And the effects are long-lasting.
The effect of bankruptcy on your credit score is most acute in the year or two after you file.
But as you build a positive credit history, it matters less and less.
The fact that your score is at 742 suggests your credit has already recovered significantly.
But will that be enough to overcome a bankruptcy when you make a run at buy a home?
Every lender has different requirements.
In another two years or so, your bankruptcy should automatically be deleted from your file.
If it still appears, you’ve got the option to request that they remove it stat.
Bankruptcy may seem like a scar on your credit report, but it isnt permanent.
Because time heals both old wounds and derogatory credit marks.
Robin Hartill is a senior editor at The Penny Hoarder and the voice behind Dear Penny.
Send your questions about rebuilding credit to[email protected].
