Those who file for bankruptcy in Texas will likely notice that the filing is listed on their credit reports. How long it stays on a credit report depends on what type of protection an individual sought. If a person filed for Chapter 7 bankruptcy, it will stay on that individual's credit report for up to a decade. A Chapter 13 bankruptcy only stays on a credit report for seven years.
It is important to note that the impact of a bankruptcy is stronger soon after filing and becomes less significant as time passes. It is also possible to get a bankruptcy off of a credit report in less than 7 or 10 years. This may occur if information related to the proceeding is not properly listed on the report. In the event that a bankruptcy doesn't go away after 7 or 10 years, people should be sure to let the credit bureaus know to remove it.
Individuals who filed for bankruptcy because of poor spending habits should create a budget to ensure that they don't make similar money management mistakes again. Those who are seeking to rebuild their credit after their cases have been discharged may want to do so through the use of a secured credit card. Prior to filing for bankruptcy, individuals may want to consider debt consolidation or a debt settlement to obtain financial relief.
Filing for bankruptcy may make it possible to have debts discharged without losing property or making payments to creditors. Debtors who file for Chapter 13 bankruptcy may have debt balances discharged at the end of a repayment period that lasts for three or five years. While a case is ongoing, creditors are generally unable to contact debtors or take actions to collect a debt, such as seizing a home or personal vehicle.