Bankruptcy can stay on your credit report for up to 10 years.  While a bankruptcy will damage your credit rating, it may be less damaging than many negative marks on your credit report. 

Your credit score usually rises within a year or two of filing bankruptcy if you can show a consistent pattern of paying on time and some financial stability.  You should try to establish some form of credit from sources which you can use as references.  If these sources of credit do not normally report to the credit bureaus, you may ask them to do so.

The reason for which you filed bankruptcy can be an important factor in your credit file.  You may have had a good credit history but fell victim to a financial disaster, such as a business failing or a medical problem.

If you have otherwise been a responsible bill-payer, you would like prospective creditors to know the circumstances behind your bankruptcy.  You can do this by issuing a 100 word statement to each of the credit bureaus so that they may make this part of your credit file.  Your statement should include:

·         The isolated factor which caused your bankruptcy

·         Your otherwise good credit history

·         That the financial problem has been erased and you are now financially stable

You can possibly eradicate a bankruptcy mark on your credit report much the same way that you do a tax lien. If you challenge a bankruptcy mark on your credit report, the government must document the bankruptcy to the credit bureau within 30 days. 

If you have struggled with bankruptcy in the past and are unsure if you are able to refinance or purchase a home, one of our Home Loan Specialist would be happy to review your situation. Give us a call at 1-888-562-6200 or head to our website www.churchillmortgage.com to Request a Call Back and one of our Loan Specialists will contact you at a time that is convenient for you.