Going through bankruptcy can and will have a devastating effect on your credit scores. Having bankruptcy listed on your credit reports will make you unworthy to get credit from any lenders. Bankruptcy listing is the only part of your credit report that will be sought and will always result in a negative decision from every potential lender. It is considered a fact that bankruptcy will not be removed from your credit report. The truth is that you can always dispute bankruptcy just the same way you can dispute any other deprecating account on your credit report.

There is one option of credit repair, but it is quite lengthy and has a long time frame. How credit repair works is that you or your attorney will challenge any negative markings on your credit history. "The fair Credit Reporting Act" will give you the right to dispute anything on your credit report. Once the credit reporting agency contacts all the creditors and lenders to verify your account and debts, they will have thirty days to respond with verification. If they do not respond in the given time, the negative mark will be removed from your credit report. In the instance if the creditors do respond, you can challenge again and ask for real proof of debts. The creditors and lenders will have to provide the agency with documents, such as contracts, and a list of payments and bills.

In case the creditor or lender does not reply back with documents to verify your debt, that account will be removed from your credit report. This is also similar for bankruptcy. Often, the court does not transfer enough information to the credit reporting agency, thus removing the bankruptcy. Although this does not mean that the bankruptcy will be completely removed. The final decision is made in the court and the agency assists to make it. Obviously, if the mark on your credit report is not accurate or lacks evidence, then it is a lot easier to have it taken care of, or removed.

The fact is that having the negative mark removed from your credit report doesn't mean that the actual bankruptcy is removed. You will still have debts pending and owe money to all the creditors and lenders. Inaccurate documents from the creditors will only result in having the mark removed from your credit report, but you will still be liable to repay all the debts.

Every account included in a bankruptcy will remain on your personal credit report for a maximum of seven years from the date that bankruptcy was filled. The bankruptcy itself will remain listed in the public records for credit reports for a period of seven years, provided it was filled under Chapter 13. Bankruptcy will remain listed in the public records for a period of ten years if it was filled under Chapter 7, 11 or 12.

Filing for bankruptcy is a last resort to pay off any outstanding debts. There are few other ways to gain financial aid to repay debts. Having bankruptcy listed on your credit report will not allow you to receive any credit for a number of years. You can resort to financial rehabilitation before you decide to file for bankruptcy.