How does a bankruptcy discharge affect a persons credit report?
There is no question that a bankruptcy will hurt any persons ability to get credit in the future. The fact that a person filed a chapter 7 will appear on their credit record for ten years. Generally, the best probably the only way to get good credit is to pay your bills on such terms as you originally agreed when they become due. While the bankruptcy will be listed on your credit record, you may be fortunate enough to find a creditor willing to overlook this. However, many creditors may not overlook your bankruptcy filing. In my experience the key factor as to whether a debtor can rebuild their credit is what is their income is. If a debtor earns a substantial salary, then a creditor may be willing to take a risk and give the debtor a car loan or a mortgage. However, the interest rates normally will be very high. A person who has filed for bankruptcy will usually pay about 17% to 20% for a car loan. Moreover, a person who has filed for bankruptcy normally will pay for 12% to 14% for a
