Over the years, I have learned that there is a lot of misinformation circulating about bankruptcy. Much of the information is good and gives fair description of how a bankruptcy filing may impact you. However, there is a lot of misinformation or simply untrue information about bankruptcy. The next several blogs will deal with a number of these myths people may read about filing bankruptcy.
Bankruptcy Myth 7: Filing Bankruptcy Will Hurt Your Credit For 10 Years.
FACT: You are getting 2 completely different concepts confused with each other. You are getting the fact that bankruptcy is reported on your credit report for up to 10 years mixed up with the effect that reporting will have on your credit. Just because something is reported on your credit report does NOT mean it will have a negative effect on your credit standing. Usually, on the date you file bankruptcy, that is the worst your credit report will ever look and most people will have successfully rebuilt their credit within 2 years.