This is third in a series of articles I have wrote about dismissed bankruptcy cases. The first article discusses how to dismiss a bankruptcy. The second article discuss what happens after bankruptcy dismissal. This article will tell you all about what happens to your credit report after a dismissed bankruptcy. This article may suprise you!
Bankruptcy Means Bankruptcy
Many people believe that a dismissed bankruptcy “doesn’t count.” Nothing could be further than the truth. A bankruptcy filing is a public record and is accessible pretty much in perpetuity. Once filed, a case number is established along with a public docket of information. The court will not erase the case number or docketed items when a bankruptcy is dismissed.
Dismissed Bankruptcy and Credit Reporting
As you probably know, the major credit bureaus report bankruptcy filings. You will see a bankruptcy filing reported under the “public records” section of a credit report. As a general rule, a bankruptcy filing will remain on your credit report for 7 to 10 years. Credit reporting agencies make no distinction between a discharged and dismissed bankruptcy when it comes to how long the bankruptcy will remain on the credit reports.
Credit scoring models take bankruptcy filings into account when calculating credit scores. This means that even a dismissed bankruptcy will impact your credit score. As you can see, filing bankruptcy is not a decision to take lightly. The consequences can be long-lasting.
Conclusion
The point of this article should be clear. You should only declare bankruptcy if you really need to. Moreover, you should carefully consider your bankruptcy options before filing to ensure the success of your case.
I help consumers and business owners all over the Sacramento area with bankruptcy. Please call my office at (916) 333-2222 to discuss your bankruptcy options.
