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Will filing for bankruptcy permanently destroy one's credit?

While bankruptcy may affect a Chattanooga resident's credit for a period of time, it is not a permanent black mark on one's record.

Under the law, a bankruptcy discharge will appear on a consumer's credit report for a number of years. For example, a Tennessee resident who uses Chapter 7 bankruptcy to get out of debt will see that process on their credit documentation for a full decade. Those who use Chapter 13 bankruptcy to overcome their financial woes will see it on their credit reports for seven years.

These periods of time are long, and for some individuals the wait to have bankruptcies removed from their credit reports may deter them from using bankruptcy at all.

However, it is important that before a person makes a decision about whether personal bankruptcy will ultimately serve their needs that they fully consider the advantages and drawbacks of how it will affect their life. A bankruptcy attorney can be a useful and authoritative resource in this respect and may provide a person with options for addressing their unique debt needs.

For example, while although a bankruptcy may prevent a person from attaining and using credit for a number of years, it can clear a person's financial obligations and leave them with manageable expenses as they move toward a more stable future. An individual who has gone through bankruptcy may need several years to be ready to make a big purchase and therefore may not need the extensive lines of credit of someone who is prepared to buy a home or vehicle.

Bankruptcy is a long process that can last a long time on the credit report of a filer who has reached discharge. This, however, should only be one of the many considerations that the person uses to decide if personal bankruptcy is right for them.

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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