If a Florida resident files for Chapter 7 bankruptcy, it will likely stay on his or her credit report for 10 years after the filing date. If a person files for Chapter 13 bankruptcy, it will remain on the report for seven years. Unfortunately, there are very few instances in which a person can get the fact that he or she filed for bankruptcy taken off his or her credit report once it shows up on it.
This may be true even if a person chooses not to follow through with the filing or backs out at some point in the process. However, if a debtor explains to a lender that he or she tried to have the bankruptcy canceled, it may be a point in his or her favor when applying for a loan. Even if someone is able to get his or her bankruptcy canceled, it could be extremely costly to do so and may require legal counsel.
Ideally, debtors will do their best to keep paying their bills on time and avoid using credit cards to increase their scores. After one or two years, the effect of a bankruptcy should be less severe, assuming that no new blemishes appear on a credit report.
Those who are seeking to eliminate debt may wish to file for bankruptcy. Doing so may put a temporary halt to creditor collection actions, such as repossession or foreclosure, as soon as the case is filed. It may also enable a debtor to renegotiate the terms of secured loans such as a car loan or mortgage. Those who file for Chapter 7 bankruptcy may be able to have their debts settled in a matter of weeks while paying little or nothing to creditors.