What is Bankruptcy?

Bankruptcy occurs when people, businesses, or other institutions who cannot pay their debts choose to seek relief from the debts they owe to their creditors. This process often includes the liquidation of assets possessed by the owner and restructuring of the person or institution’s financial plans and payments to provide them with the opportunity to retain their business and improve their financial standing with their creditors.


The option of declaring bankruptcy has not always existed in the civilized world. In ancient Greece, those who were unable to pay their creditors what they were owed were often punished by having their wife and children sold into slavery. That wasn’t the only devastating consequence in the world–even in Europe in the 1500’s, the penalty of bankruptcy often became a capital penalty after three declarations of bankruptcy. Fortunately, in today’s world, these are not concerns you expect to face when working with your bank or broker.

Today, bankruptcy is not a retributive penalty. It’s instead a method of rehabilitation that’s designed to help people get back on their feet in the midst of, or immediately following financial distress and burden.

What Happens After?

Navigating finances in the wake of a bankruptcy declaration is difficult. There is certainly a negative social stigma surrounding bankruptcy that can be disheartening. Adjusting to different styles of financing is also hard to manage. The most difficult part of this process, however, is dealing with damaged credit.

Bankruptcy is extremely damaging to credit scores. It can be extremely disheartening to watch your credit score deteriorate because of a bankruptcy. It’s relatively well known that credit repair is possible for those looking to receive a loan for a car purchase or a mortgage, but the question for those seeking to repair credit is this: Can credit repair remove bankruptcies?

Repairing Credit After Bankruptcy

The answer to the question above is a little more complicated than a simple “yes” or “no”. An accurate statement of bankruptcy can stay on your credit report for at least seven years for a Chapter 13, and can increase to up to 10 years for a Chapter 7. If a bankruptcy statement on a credit report contains inaccurate information, it is your right and privilege to dispute the bankruptcy entry.

The Bankruptcy Court has no interaction with credit bureaus. The Bankruptcy Court does not report information regarding bankruptcy cases to credit bureaus and does not verify the accuracy of information regarding bankruptcy cases held by credit bureaus. With bankruptcies, we Challenge and Validate the information reported on your credit report. By using it we are able to force the credit bureaus to prove that what they are reporting is accurate, timely, complete, and has no errors. If they cannot, then, by law, they have to remove it.

While it may not completely eliminate the recorded bankruptcy on your credit report for the next few years, repairing your credit is still essential and should still be a priority. Repairing credit decreases the likelihood of future bankruptcy and additionally helps you become more fiscally knowledgeable and responsible.

Using the Right Tools

If you lack experience working with finances and creditors, you may be especially susceptible to using outdated techniques and technology when seeking to improve your credit. For this reason, it’s essential that you seek out and work with a credit repair specialist. In this field, Tony’s Credit Repair is extremely proficient and capable. They work efficiently by utilizing newer, more efficient technology to repair credit. Bankruptcy credit repair is feasible and attainable with Tony’s Credit Repair. By working with Tony’s Credit Repair, you save money in the present as well as the long run. Not only are you working to repair your score with current, efficient tools, but you learn financial tips, tricks, and techniques that can help you be more responsible with your credit in the future. Bankruptcy can be scary and might leave you feeling overwhelmed, but it doesn’t have to be as arduous and painful as it may seem. With the right tools, you can repair and recover your credit. Bankruptcy is not the end for you and you can move towards a happier future with a little help.