The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • Submit an Article
  • Books
  • Categories
  • Coaching
  • Book Lynnette
  • Money Coach University™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • Submit an Article
No Result
View All Result
The Money Coach
No Result
View All Result

How Long Will a Bankruptcy and Foreclosure Appear on My Credit Report?

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Bankruptcy
Reading Time: 2 mins read
How Long Will a Bankruptcy and Foreclosure Appear on My Credit Report
8
SHARES
127
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

When you miss a credit card payment, mortgage payment or end up going into deep debt that you can’t realistically pay off within a reasonable amount of time, you put yourself at risk for bankruptcy or foreclosure.

Many people who end up filing for bankruptcy or are dealing with foreclosure find it difficult to apply for a loan or get a credit card shortly after everything has been finalized. This is because information about your bankruptcy and foreclosure will stay on your credit report for several years.

In a lender’s eyes, you are a “high risk” candidate and many lenders will simply deny you for a loan because your credit history.

Many people are confused about the Statute of Limitations on certain types of debt. It’s important to remember that the Statute of Limitations has absolutely nothing to do with the length of time that something stays on your credit report.

Bankruptcy and Your Credit Report

Filing for bankruptcy is a drastic measure but sometimes you don’t have any other choice. Bankruptcy information stays on your credit report for up to 10 years.

Bankruptcy is a legal way to discharge your debts, but filing bankruptcy will have the most negative effect on your credit score. It’s always in your best interest to make sure that information about the filing are reported to the credit bureaus correctly.

Keep in mind that according to FICO, a bankruptcy that is “Dismissed” does not actually lower your FICO score. When your bankruptcy has a “Disposition” status, it will impact your credit rating. When you are able to work on improving your credit rating, make sure that you take steps to dispute any information that is inaccurate or outdated so that it does not show up on your public records.

Foreclosures and Your Credit Report

When a foreclosure gets reported to the credit bureaus, you can expect your credit score to drop by as much as 150 points. In most cases, borrowers who have dealt with foreclosure are granted “subprime status”, which means they aren’t eligible for attractive interest rates in the near future.

Like bankruptcy, a foreclosure is considered to be a serious delinquency and will stay on your credit report for up to seven years from the date of filing. Even when you meet a lender’s requirements based on a past foreclosure, an underwriter will still see you as a risky candidate for another mortgage and you may find it very difficult to get the loan you want.

It is possible to have the foreclosure removed from your credit report, but this can be a very lengthy process and will require some strong negotiation skills.

When you have bankruptcy or a foreclosure in your credit history, it’s even more important to make sure you are keeping up with other bills and working towards repairing your credit.

You may need to wait several years before your credit score improves after the negative impact from these credit problems, but you will be able to remove them from your credit history completely within seven to ten years.

Tags: Foreclosurestatute of limitations
Previous Post

What is the Consumer Financial Protection Bureau (CFPB)?

Next Post

6 Common Lies Debt Collectors Will Tell You

Lynnette Khalfani-Cox, The Money Coach

Lynnette Khalfani-Cox, The Money Coach

Lynnette Khalfani-Cox, The Money Coach, is a renowned financial expert, author, speaker, and media personality, empowering people to achieve financial success.

Related Posts

50 cent

Rapper 50 Cent and Bankruptcy: Myth Vs. Fact in This Money & Media Mirage

by Lynnette Khalfani-Cox, The Money Coach

Social media and the mainstream press have been buzzing recently about rapper 50 Cent and his Chapter 11 bankruptcy filing. If you’ve read any of the news coverage, or followed the stream of mostly snarky comments on Twitter or Facebook, you might be inclined to believe any of the following...

Video: How Your Bankruptcy Will Impact Your Future Spouse’s Credit

by Lynnette Khalfani-Cox, The Money Coach

A subscriber to AskTheMoneyCoach.com is getting married, but recently filed for bankruptcy. The person wants to know how her bankruptcy will impact her future spouse's credit report. According to recent data from the American Bankruptcy Institute, there were 1.2 million personal bankruptcy filings in the United States in 2012. If it’s...

5 Things to Do Before You Go Into Foreclosure

by Lynnette Khalfani-Cox, The Money Coach

 If you’re having trouble keeping up with your mortgage payments and think you might be headed for foreclosure, there are still some things you can do to ameliorate the situation. Millions of U.S. homeowners have had their properties repossessed in recent years, so if you’re on the verge of losing...

AskTheMoneyCoach.com bankruptcy

Can I Change My Mind After Paying for a Bankruptcy Filing?

by Lynnette Khalfani-Cox, The Money Coach

Sometimes, people who intend to file for bankruptcy protection have a change of heart once it’s done, or once they pay to have a bankruptcy initiated. According to a bankruptcy attorney, different procedures apply once the bankruptcy has been filed with a court, as opposed to when you have only...

bankruptcy

5 Reasons People File for Bankruptcy

by Lynnette Khalfani-Cox, The Money Coach

 According to recent data from the American Bankruptcy Institute, there were 1.2 million personal bankruptcy filings in the United States in 2012. If it’s increasingly difficult for you to cover all your bills, you find yourself using credit cards to pay for basic necessities, or you’re currently considering any type of debt...

cost to file for bankruptcy AskTheMoneyCoach.com

How Much Does it Cost to File for Bankruptcy Protection?

by Lynnette Khalfani-Cox, The Money Coach

 Approximately 1.2 million Americans filed for bankruptcy in 2012 and more than 1 million more individuals are expected to go bankrupt in 2013. Continued layoffs, foreclosures, rising healthcare costs and mounting credit-card debts are all still taking a toll on many people. If you’ve thought about filing for Chapter 7...

truth bankruptcy AskTheMoneyCoach.com

The Truth About Bankruptcy: It’s All Here – The Good and Bad

by Lynnette Khalfani-Cox, The Money Coach

Bankruptcy isn't a step that should be taken lightly. But sometimes, it's a necessity that simply can't be avoided. If you're overwhelmed by enormous credit card debts you can never repay, struggling with massive medical bills, or are barely staying afloat due to unemployment, bankruptcy may be a good alternative...

Load More

Popular Posts

  • Car repair

    What to Do If You Can’t Afford a Car Repair Bill

    1530 shares
    Share 612 Tweet 383
  • What to Do if Your Spouse Stole Money From You

    1313 shares
    Share 525 Tweet 328
  • What to Do If You Can’t Afford to Leave Your Spouse

    1278 shares
    Share 511 Tweet 320
  • Here’s Why I Pay My Kids For Good Grades (And Maybe You Should Too)

    1132 shares
    Share 452 Tweet 283
  • What Do All Those Strange Codes In My Credit Report Mean?

    902 shares
    Share 361 Tweet 226
  • Which Credit Report is More Important: Equifax, Experian or TransUnion?

    871 shares
    Share 348 Tweet 218
  • Do This Now If Your Wages Were Not Reported

    855 shares
    Share 342 Tweet 214

Categories

  • Bankruptcy
  • Budgeting
  • Building Wealth
  • Careers
  • Couples and Money
  • Coupons and Deals
  • Covid-19
  • Covid-19 Video
  • Credit Cards
  • Credit Reports
  • Credit Scores
  • Crypto
  • Debt
  • Entrepreneurship
  • Family Finances
  • Featured
  • Identity Theft
  • Insurance
  • Investing
  • Loans
  • Paying for College
  • Personal Finance
  • Press Releases
  • Real Estate
  • Retirement
  • Saving Money
  • Scams
  • Student Loans
  • Taxes
  • Uncategorized

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

RSS / Sitemap /Submit an Article / Privacy Policy / LynnetteKhalfaniCox.com

No Result
View All Result
  • Books
  • Categories
  • Contact Lynnette
  • Get Coaching
  • Book Lynnette
  • Money Coach University™
  • Home
  • Subscribe to Newsletter
  • Submit an Article

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist