You need to ask a banker or someone in the credit industry to whom you do not owe money for their opinion, as this law firm is not trained in evaluating credit-worthiness. However, my banker and mortgage broker friends and former clients tell me it is not that bad. In fact, I have been told on numerous occasions that it is better to have filed a chapter 7 bankruptcy and received a discharge than merely to have bad credit, a foreclosure or something else on your credit, especially if you are trying to get a house mortgage. Creditors frequently tell my clients that they just need to file bankruptcy to straighten out their credit. I have heard this so many times with increasing frequency from a variety of sources that I believe it. However, I am sure there is room for disagreement and that everyone’s file is different.
What SHOULD appear on your credit is the fact that the bankruptcy was filed; that the balances on all of the debts which are discharged shouldappear as ZERO; and underneath each creditor whose debt was discharged it should say that the debt was discharged in bankruptcy.
Creditors whom you owe and whose debt you have reaffirmed should continue to report your timely payments. This does not mean that you should reaffirm a debt just for that reason. See me for a way to not reaffirm and force the creditors to report that you are paying a debt that has not been reaffirmed on time.
