There are few of us who have not experienced some really stressful financial times throughout our lives. A loss of a job, medical bills, or maybe just the piling up of credit card debt has rendered quite a few of us helpless and hopeless in the face of burgeoning debt and a shockingly inadequate income to keep pace. Most often we just ride out these times and find the money – somehow – to pay the bills and move on as best we can. But there are those times for some people where they are simply drowning in debt and not able to find the light of day. And when things get really bad – and personal property is on the line – many people determine that bankruptcy is the only way to go.

Bankruptcy is a last resort for those who are in financial straits. While it discharges much of a consumer’s debt and allows them to financially start over, it does leave a mark on the consumer’s credit report. Put simply, a credit report is our financial report card – the history of our debt and spending and our track record when it comes to making on time payments. Lenders look at our credit report to determine if we are credit worthy and should be given a loan for which we have applied. When bankruptcy is on our credit report, we are likely not to receive a loan for quite some time.

There are various opinions as to how long a bankruptcy stays on a consumer’s credit report – but it is generally anywhere from seven to ten years. This is not to say that the consumer will not be able to qualify for any credit a few years after bankruptcy but chances are it will not be a big loan. Lenders want to see a change in behavior following a bankruptcy so consumers would do well to use secured credit cards and other methods for rebuilding their credit following a bankruptcy.

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