Texas Bankruptcy and Your Credit Report

: Chris Lee Law Firm

  Filed under: Credit Tips

creditWhen determining whether or not to file for Texas bankruptcy – or which chapter to file under – many people wonder about how the bankruptcy will affect their credit report. While it is true that  bankruptcy stays on your credit report for a good length of time, the negative effects of this fact are often overstated. If you are seeking the protections of  bankruptcy, the effect on your credit report should not be a primary concern.

How Long Credit Report is Affected

A Chapter 13 Texas bankruptcy remains on your credit report for seven years after filing. A Chapter 7 remains on your credit report for ten years after filing. During this period, information pertaining to the bankruptcy will be on your credit report, but the significance of the impact of this information to your credit score or potential approval for loans will diminish steadily as the distance from the filing date increases. A few years down the road, if you have taken the proper steps to rebuild credit after the Texas bankruptcy, and made all your payments in a timely fashion, the bankruptcy will appear on your credit report as in a rearview mirror, receding into the distance.

The effect of Texas bankruptcy on your credit report is not monumental; it is simply part and parcel of the filing process, and must be taken along with the great benefits that filing can offer for those in need. Although the seven or ten years the filing will stay on your report can be daunting, it is important to remember that as long as you work to rebuild your credit after Texas bankruptcy, the negative impact will be minimized.

If you are considering filing for Texas bankruptcy, consult with a Dallas bankruptcy lawyer right away and let them help you get a clearer picture of your financial options.


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