Credit Score For Dummies

While no one ever wants or thought they would file bankruptcy twice in their lifetime, the reality of the economic situation we are in has left many of my clients facing bankruptcy for the second or third time.

The Bankruptcy Abuse and Consumer Protection Act of 2005 changed the time in between filings.  Here is a quick guide to the time periods that apply to re-filing:

• You cannot file Chapter 7 bankruptcy until eight years from the date of the previous filing
(not the date of discharge) of the previous Chapter 7 bankruptcy.

• You cannot file a Chapter 13 bankruptcy unless you received a discharge under Chapter 7 bankruptcy 
more than four (4) years ago or under Chapter 13 bankruptcy more than two (2) years ago.

If you are currently in an active Chapter 13 bankruptcy that you cannot or no longer wish to complete, then there are provisions for converting a Chapter 7 bankruptcy to a Chapter 13 bankruptcy. This mi

Filing for bankruptcy is one of the worst entries that can be found on your credit report. It can very ruin your credit score and cripples the potential for borrowing credit in the future. A bankruptcy filing can continue to affect your credit long after it has all of your credit report which will typically take 7 to 10 years since most of the creditors are liable to ask you if you have ever filed for bankruptcy in the past. The law requires every consumer to answer truthfully to the questions of the creditor and failing to do so makes you guilty of fraud which can lead to prosecution. It is always better to pay off your debt and avoid bankruptcy.