There are a few different types of Bankruptcy, all with varying degrees of impact to your financial future. Chapter 7 is complete Bankruptcy and will hang around on your credit profile for 10 years. Chapter 13 is a better option and operates similar to a payment plan and for 7 years will stay on your credit report. Bankruptcy is for life though, and once you’ve filed for one, every time you’re asked you’ll have to say “Yes” which will invariably open up a can of worms.
The best option is to avoid Bankrupcy entirely. In most cases this is a legitimate option.
March 31st, 2009 at 7:21 pm
Fannie Mae 1003 (application for a mortgage) only asks if you have declared a bankrupcy in the last 7 years, anything prior to that once its off your credit report is your own business.