Credit Events
Bankruptcy
What it means
A legal process that lets people or businesses seek relief from debts they cannot repay. Chapter 7 bankruptcy discharges most debts within a few months but stays on your credit report for 10 years. Chapter 13 sets up a repayment plan over 3-5 years and stays on your report for 7 years. Bankruptcy hurts your credit badly at first, but it does not stop you from rebuilding.
Covered in the free course
- Anatomy of a Credit Report: Section by SectionReading Your Credit Report
- Your Rights Under the FCRADisputing Errors Like a Pro
- Red Flags and Warning Signs to Watch ForReading Your Credit Report
- What's Actually Disputable (and What Isn't)Disputing Errors Like a Pro
- Collections and Charge-offs: Your Recovery RoadmapCommon Credit Problems
- Bankruptcy: The Nuclear Option and Life AfterCommon Credit Problems