Filing for bankruptcy is never an easy decision, but it can be the first step toward taking back control of your financial future. One of the most common concerns people have is, “What will this do to my credit?” While bankruptcy will appear on your credit report, it doesn’t define your future. In fact, bankruptcy can help you rebuild your credit more effectively than continuing to struggle with overwhelming debt.
In this post, we’ll explain how bankruptcy affects your credit report, your rights under the Fair Credit Reporting Act (FCRA), and how to rebuild and protect your credit after filing.
🔍 What Happens to Your Credit Report After Bankruptcy?
When you file for bankruptcy, the filing is reported to the three major credit bureaus: Equifax, Experian, and TransUnion.
Chapter 7 bankruptcy stays on your credit report for 10 years from the filing date.
Chapter 13 bankruptcy stays on your report for 7 years from the filing date.
Although these timelines may seem long, keep in mind: the negative debts you discharge in bankruptcy will also stop reporting, and you’ll no longer accumulate missed payments, defaults, or collections — which may have an even more damaging long-term effect on your credit score.
⚖️ Your Rights Under the Fair Credit Reporting Act (FCRA)
The FCRA gives you the right to accurate, fair, and private reporting of your financial history. After your bankruptcy is complete (or “discharged”), your credit report must reflect the changes — and creditors must update your account statuses appropriately.
You have the right to:
✅ Dispute incorrect account information
✅ Request that discharged debts show a $0 balance and “discharged in bankruptcy”
✅ Have outdated or incorrect information removed
✅ Receive a free credit report from each bureau once per year via AnnualCreditReport.com
If creditors or bureaus fail to update your report, or continue to show discharged debts as active or past due, it may be a violation of federal law — and you could be entitled to damages.
🚩 Common Credit Report Errors After Bankruptcy
Unfortunately, credit reporting mistakes after bankruptcy are all too common. Watch out for:
Debts listed as active or in collections after discharge
Incorrect balances on accounts included in bankruptcy
Missing notation that an account was discharged
Duplicate accounts or outdated entries
Re-aged debts (resetting the date of delinquency)
Tip: After your bankruptcy is discharged, wait 60–90 days, then check all three reports for accuracy.
💳 Rebuilding Credit After Bankruptcy: Step-by-Step
Bankruptcy gives you a clean slate — but it’s up to you to rebuild from there. Here’s how to do it legally and effectively:
1. Check and Monitor Your Credit Regularly
Use free services or enroll in a credit monitoring plan. Stay alert to changes.
2. Apply for a Secured Credit Card
A secured card uses a cash deposit as collateral and reports to credit bureaus monthly.
3. Use Credit Wisely
Keep balances low and pay in full each month. Don’t overextend yourself.
4. Consider a Credit-Builder Loan
These are small loans designed to establish or rebuild credit over time.
5. Avoid Predatory Lenders
Stay away from high-interest “bad credit” loans or credit repair scams. If it sounds too good to be true, it probably is.
👨⚖️ How a Bankruptcy Attorney Can Help Protect Your Credit
A good bankruptcy attorney does more than just file paperwork. We:
Ensure your credit report is updated accurately post-discharge
Help you understand and use your rights under the FCRA
Take legal action if creditors report inaccurate or misleading information
Guide you toward long-term financial recovery
💼 Reclaim Your Financial Reputation — Starting Today
Bankruptcy isn’t the end of your financial story — it’s the beginning of a smarter, more secure chapter. With the right guidance and tools, you can rebuild your credit, protect your consumer rights, and move forward with confidence.
If you're in Mississippi and thinking about bankruptcy, we’re here to help.
Schedule a free consultation today and let us help you get your credit — and your life — back on track.
Law Offices of Wes Stover
601-949-5000