Bankruptcy's Effect on Your Credit Rating

Federal law allows a bankruptcy to remain part of a debtor's credit history for 10 years. Whether or not the debtor will be granted credit in the future is unpredictable. In some cases, it may actually be easier to obtain future credit. New creditors may feel that, since the old obligations have been discharged, they will be first in line in the event of another bankruptcy. They also recognize that the debtor cannot again file bankruptcy for at least the next six years.

Debtors have the option after bankruptcy of voluntarily paying some creditors, such as a doctor or hospital, with whom they wish to maintain credit. The payments are voluntary and do not reaffirm the past obligation.