 TITLE: What Are the Requirements for Bankruptcy? CONTENT: How Does Filing for Bankruptcy Affect Your Credit?\n--------------------------------------------------\nFiling for bankruptcy is one of the worst things you can do for your credit since it's a signal to future creditors that you were unable to meet your debt obligations. Fortunately, a bankruptcy filing doesn't leave a permanent mark on your credit reports, and you can start rebuilding your credit while you're trying to get your finances in order.\nNo matter whether you've filed for Chapter 7 or Chapter 13 bankruptcy, it'll show up on credit reports for card issuers and other lenders to see. Chances are, lenders will take your bankruptcy into consideration when you apply for credit. Once you've wrapped up the bankruptcy process, your credit reports will indicate that the bankruptcy and the debts covered by your filing have been discharged.\nA Chapter 7 bankruptcy will stay on your credit reports and affect your credit scores for 10 years from the date your court case is filed; a Chapter 13 bankruptcy stays on your credit for seven years. As time goes by, however, a bankruptcy's effect on your scores slowly decreases.\nWhen you apply for credit, lenders might not OK your application unless the bankruptcy has been discharged. Even then, you might find it difficult to obtain certain kinds of loans. If your application does go through, you might be confronted by high interest rates and other less-than-favorable lending terms.\nIt's worth noting that some lenders might view a Chapter 13 filing less negatively than a Chapter 7 filing. Why? They might consider a Chapter 13 filer less of a credit risk than a Chapter 7 filer. That's because in a Chapter 13 case, you repay all or part of your debts over a three- to five-year period, whereas debts are erased in a Chapter 7 case.\nAlso, keep in mind that if your FICO® Score☉ was good before filing for bankruptcy, you'll likely see a steeper drop in your score than if your score was already low. END