Bankruptcy

What happens to my credit after I file bankruptcy in California?

Generally, bankruptcy in California is not significantly more harmful than the financial history that led to the bankruptcy filing in the first place. Most debtors prior to bankruptcy in California could not get new credit from a lender who looked closely at their financial condition anyway. Bankruptcy at least makes all the debt shown in the negative history unenforceable. You want to make sure that the bankruptcy discharge also shows on the credit report so that creditors understand that those old creditors have no legal claim remaining. The bankruptcy in California can be on your credit report for up to ten years. However, you are not barred from borrowing. The bankruptcy in California is only one factor in determining credit-worthiness. Lenders take a practical approach looking at a person's post-bankruptcy in California ability to re-pay. In fact, for many lenders, persons who have been through bankruptcy in California are a better risk because they are now debt-free, and are determined to get a new start.