Federal law mandates that a personal bankruptcy be removed from your credit report after 10 years but does it really ever go away? For all intents and purposes we could answer that question with a yes or a no, and both answers would be correct.
On the surface the bankruptcy does "go away" as it gets removed from your credit report but any lender that digs deep enough can still find evidence of it. Knowing this you should only consider filing for bankruptcy as an absolute last resort. If you do decide to file you should start monitoring your credit report on regular basis, and start the credit repair process as soon as possible.
To accomplish this you should hire a competent credit repair service that also allows you frequent access to your credit report, and then try and get a "secured" credit card. The later is really a savings account of sorts, where you deposit money into an account and draw it back out by way of a credit card. These two processes will go a long way in getting you back on track regarding your credit-worthiness.
Three more things you should consider:
1. Not all creditors will react to your bankruptcy in the same way but your credit score will definitely be beaten up, and the bruises will most certainly take a long time to heal.
2. Not all of your credit obligations will be absolved without immediate recourse. In other words if you want to keep driving that car you owe money on, or living in that house you're still paying for, then you've got to continue to pay for those debts after bankruptcy.
3. Also keep in mind that your post-bankruptcy payment history will be heavily scrutinized so do not take your "second chance" lightly, and do not continue the same spending habits that got you in trouble in the first place.
Source by John L Martin