Bankruptcy

Bankruptcy is a legal proceeding filed in the United States Bankruptcy Court that permits you to obtain a discharge of your obligation to pay certain debts. The bankruptcy laws are intended to allow an honest, but unfortunate debtor an opportunity to get a “new start.” But bankruptcy is not a free ride. Depending on your personal situation and the laws of your state you may have to liquidate some of your property and assets. There are also different types of bankruptcies.


Most bankruptcies stay on your credit report for 7-10 years. Most lenders will not extend a mortgage loan to you until 3 years after it was discharged in most cases. A bankruptcy handled the correct way can still allow the person to obtain new credit while filing.