The Truth about Your Credit Report

Bankruptcy Resources Credit Report • Author Mark Martella, Esq • Mar 18, 2015

Credit Report

The Truth about Your Credit Report

There are many misconceptions I hear from clients about their credit report, and their fear that by filing bankruptcy or going through a foreclosure will ruin their credit for the rest of their lives. That concept is simply false.

While it is true that a bankruptcy will appear on your credit report for 10 years, my response to that is, “So what?” The reality is anything that you have ever done is on your credit report. If you received a speeding ticket when you were 17 years old, that is on your credit report. If you failed to pay a store credit card when you were 20 years old and it was written off by the creditor, that too is on your credit report. The real issue is how far back will a creditor look? How long of a credit history does a creditor care about?

Generally speaking, most creditors are looking at the last 24 months of your credit history. One reason they are not looking back 15 years is because the further they look back, the more expensive it is to obtain a credit report.

Additionally, if you are 40 years old, what you did at 20 and in college, is irrelevant in making a decision to extend credit to you at this point in time. Therefore, if you have had multiple late payments in your recent credit history and your credit score is not where you would like it to be, the easiest way to begin to fix that is to discipline yourself to make all your payments on time and come up with a plan to pay down your debt. In just two years, you can dramatically change your credit score.

However, if your debt is too large to ever pay off based upon your income or due to unforeseen circumstances such as a job loss or medical condition, then bankruptcy may be a viable option to not only relieve you from the debt, but also, to repair your credit.

The TRUTH is that upon receipt of your discharge in bankruptcy, you no longer have any debt and you can’t file bankruptcy again for eight years if you filed a Chapter 7 Bankruptcy. You then become a good credit risk for any creditors and within six months you will start receiving offers of credit.

By taking small amounts of credit and paying it off each month, on time or early, in 24 months you will rebuild your credit to the point where you may even qualify for a home mortgage. Therefore, don’t let your fear of harming your credit score be a reason not to address serious financial issues, that may involve a discharge of debts that you are drowning in or a mortgage payment you simply cannot afford.

Contact a Bankruptcy Attorney


If you have a situation as we described in this article and have questions or concerns, please don’t hesitate to contact us to answer your bankruptcy legal questions.
Martella Bankruptcy Firm
18501 Murdock Circle, Suite 304
Port Charlotte, FL 33948

5237 Summerlin Commons, Suite 411
Fort Myers, FL 33907
Phone: 239-243-9934

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