For many people in financial trouble, bankruptcy is a last resort. To determine whether filing bankruptcy is the right move, it’s important to understand just what bankruptcy is, what accounts will remain visible after filing, and how filing for bankruptcy may affect future credit pursuits.
There are two main forms of bankruptcy:
Chapter 7 Bankruptcy: The person filing the bankruptcy does not repay any debts included in the filing. A Chapter 7 bankruptcy remains on your credit report for 10 years after the date filed.
Chapter 13 Bankruptcy: The person filing repays a portion of his or her debts through a debt repayment program. A Chapter 13 bankruptcy remains on your credit report for seven years after the date file and then will be deleted automatically