How long will my credit be in the gutter after filing a Chapter 7 bankruptcy in Texas?

Regardless of one’s home state, it is difficult to restore one’s credit in the wake of a Chapter 7 bankruptcy.  It might take anywhere from six months to two years for a debtor to restore his or her credit history to the point of being acceptable for new unsecured credit cards, loans and mortgages.  A Chapter 7 bankruptcy can be eliminated from one’s credit reports ten years from the date of discharge of debts – i.e., the bankruptcy court’s release of the debtor from personal liability for certain dischargeable debts.   However, a Chapter 7 bankruptcy cannot under any circumstances be removed from a person’s financial records prior to ten years from the date of the debt discharge. 

Your bankruptcy attorney can assist you with credit repair (including making sure that all discharged debts have been removed from your credit history) and credit counseling. It is critical that you abide by your re-payment agreements and pay your future debts in a timely manner.  Over time the negative effect of a bankruptcy will minimize and the impact on your credit will be offset by your ability to pay on time.  Even though the bankruptcy may remain on your credit report, it can be mitigated by more current examples of your improved financial responsibility.