Loans and Bankruptcies FAQ

If you’re no longer able to pay your debts, the best option may be to go through a legal proceeding called bankruptcy. Declaring bankruptcy allows your debts to be forgiven, however, some of your property may be liquidated in order to provide at least partial repayment to your creditors.

The amount of time it takes for your bankruptcy to fall off your credit report depends on which type of bankruptcy you file.

Most people who have personal debt such as outstanding credit card bills file either Chapter 7 or Chapter 13 bankruptcy. 

• Chapter 7 bankruptcy is when your debt is eliminated, but your nonexempt property is sold to repay as much of the debt as possible. 
• Chapter 13 bankruptcy, also known as an adjustment plan, doesn’t free you from your debt, but you may be able to make more manageable payments and still retain your property.

So, back to the question— how long does it take to recover from bankruptcies? Chapter 7 bankruptcies typically stay on your credit report for up to ten years. Chapter 13 bankruptcies may be removed after seven years if you follow through with your payment plan.

The simple answer is yes. However, some lenders will automatically deny anyone with a bankruptcy. Additionally, because filing for bankruptcy may affect your credit score, you might not qualify for loans that check your credit.

While it varies by lender, on average you’re required to have a credit score of at least 610-640. If you have a low credit score and you’re wondering how long it takes to recover from bankruptcies and the corresponding low credit score, you’ll be pleased to learn that some lenders, including Superior Financial Services, will provide loans to people who are working on rebuilding their credit.

Yes, if you’re struggling to get approved for a personal loan, having someone cosign for you can be a great way to improve your chances of approval.

While you’re waiting for your bankruptcy to drop off your credit report, you can take proactive steps to rebuild your credit, such as opening a secured or unsecured credit card or getting a loan and making payments on time. Although the bankruptcy will still be there, you may be able to boost your score by diligently making timely payments moving forward.

If you’re looking for loans with bankruptcies on your credit report, Superior Financial Services may be able to help. While our application process does require a credit check, our approval isn’t score-based. We offer second chance loans that help honest folks get back on track, and we’re known for keeping our clients happy.

While approval isn’t guaranteed, we have worked with many people going through similar situations, and we encourage you to apply. You might be surprised by how quickly you can recover if you have money on hand and a manageable payment plan. If you're asking how long it takes to recover from bankruptcies, give us a call; and if you're ready to get started, we are ready to help. Apply now.