How does a bankruptcy filing that does not complete affect your credit?

October 3rd, 2009 | by admin |
bankruptcy
Ted asked:

I filed for bankruptcy, but then my finances improved and I was able to pay my bills, so the bankruptcy matter was dropped and I was never declared “bankrupt” by the court and got no relief. Will this show up on my credit at some future date?
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5 Responses to “How does a bankruptcy filing that does not complete affect your credit?”

  1. By wow on Oct 6, 2009

    If the bankrupcy was not filed by the court, which is what it sounds like, then you do not have bankrupcy on record. You either have it or you don’t. However, each company that you were late paying will record late payments and if you got any of those companies to charge-off amounts that will show too. That will all look bad, but it is nowhere near as bad as an official bankrupcy. You’ll recover in a year or two compared to 7-10 years.

  2. By tj-taylor on Oct 9, 2009

    The ONLY way to know this is if it is on your credit bureaus. Have you checked them?

    annualcreditreport.com

    It’s free You’ll get your “flat files” or…all the information except your FICO score.

    If I were you I’d be curious as to how many creditors reported your late pays. Additionally, did they report that you payed off those debts!! That can be almost as bad as a bankruptcy.

    Hope this helps,
    Tj

  3. By OC1999 on Oct 10, 2009

    The bankruptcy was placed on your report when you filed with the court. The fact that it was never completed does not matter and does not remove it. It will remain on there, and effect your credit, for 7 years from the date of the filing. Hopefully you formally withdrew your petition and did not just let it get dismissed because you decided to not follow through.

    It is hard to say the exact effect it has on your score now. It depends on a lot of factors. Such as how long ago did you file, the longer it has been the less of an effect it has. How you paid the bills off, did you settle the accounts or did you pay them in full and have the collection accounts removed. How old were the debts when you paid them off, they will fall off 7 years from the date of the delinquency regardless of when you paid off the account.

  4. By haggamuffn on Oct 13, 2009

    You do need to check your credit to verify that it was not added as a public record.

    Each of the bureau’s obtain filing information from the court, and even if your case was never finalized, it could still show a filed status. I would check periodically throughout the next 3-6 months to be on the safe side.

    Another thing to check on your credit is if your creditors updated your accounts to reflect your bankruptcy filing. Even if you paid these accounts current or off, they could still be reflecting a bankruptcy. You’ll want to make sure these are corrected if that is the case.

  5. By SoCal Attorney on Oct 14, 2009

    When you file for bankruptcy, the court reports this electronically to the credit bureaus. Although it will eventually show that the case was dismissed, it will remain on your credit report and have some negative impact for up to 10 years. if you stay current on your bills, your credit will improve in time.

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