This week, I was honored to join Experian’s #CreditChat panel to talk about a topic that’s often avoided ~ but so important: bankruptcy.
Let’s be real ~ life happens. Financial setbacks, job loss, medical bills, divorce, business hardships… and sometimes, you just need a fresh start. That’s what bankruptcy can offer. It’s not about failure. It’s about resetting and rebuilding.
Here’s a quick recap of my answers from the panel, in case you missed it:
💬 Q1. What are the main types of bankruptcy, and how do they differ?
A1: Let’s keep it simple and real~ The two most common for individuals are Chapter 7 and Chapter 13.
- Chapter 7 is the “clean slate.” It wipes out most unsecured debts like credit cards and medical bills. It stays on your credit report for 10 years. You might lose some assets unless they’re exempt.
- Chapter 13 is a repayment plan. You keep your stuff but agree to repay some debts over 3–5 years. It stays on your credit for 7 years.
The most important thing? No shame. Get the facts. This is about empowerment, not judgment.
💬 Q2. What are some signs or situations where bankruptcy might be the right option?
A2: If you’re in a spot where you can’t keep the lights on or put food on the table, it’s time to protect what little you have left. If there’s no path forward with the debt you’re carrying, it’s okay to explore bankruptcy.
💬 Q3. How can people manage the emotional stress that comes with bankruptcy?
A3: Health is wealth. Financial stress can absolutely affect your mental and physical health. Journaling helped me, and so did learning more about money. You can rebuild. Take small steps and don’t isolate ~ talk it out with someone you trust.
💬 Q4. How does filing for bankruptcy affect your credit report?
A4: Any accounts included in the bankruptcy will show that status, and the bankruptcy itself will appear in the public records section of your credit report — with the date filed and the discharge date listed.
💬 Q5. How long does bankruptcy stay on a credit report?
A5: Chapter 7 stays for 10 years, and Chapter 13 for 7 years. But that doesn’t mean you’re “done” for that long. You can start rebuilding credit much sooner. Your score is never frozen ~ it can move up as you take positive steps!
💬 Q6. What are some myths about bankruptcy?
A6: Let’s bust them:
- “I’m a bad person if I file.”
- “I’ll never buy a home again.”
- “I’ll have bad credit forever.”
False, false, and false. Bankruptcy is a legal tool for a reason. You can buy a home again. You can rebuild your credit. And you are absolutely not a bad person. Period.
💬 Q7. What resources can help during bankruptcy?
A7: Learn. Learn. Learn. 📚 Financial literacy is the game-changer. Dive into credit education, understand your spending habits, and don’t be afraid to ask for help. You can check out people like Kate Northrup or tools like my app for support.
💬 Q8. What money habits help after bankruptcy?
A8: Start an emergency fund (even small amounts matter). When you use credit again, treat it like a debit card. Keep your balances low, pay on time, and don’t avoid your finances. You’re rebuilding now, one smart move at a time.
💬 Q9. How do you start rebuilding credit?
A9: Open a secured credit card and a secured loan. You want a mix of credit types ~ that helps your score. The goal is to show lenders that you’ve changed how you manage money.
💬 Q10. What does financial recovery look like?
A10: It looks like progress, not perfection. Maybe you start saving again. Maybe you finally feel peace when opening your bank app. Track your wins. Use budgeting tools. Check in with your credit. My Credit Boss Lady app can help you stay on track.
💖 Final Thoughts
Bankruptcy isn’t the end. It’s the beginning of a new chapter. Whether you’re considering it or rebuilding after it ~ just know, you are not alone. You can absolutely come back stronger.
Big thank you to https://x.com/Experian Experian and the #CreditChat community for keeping these conversations real, helpful, and empowering. Let’s keep learning and lifting each other up~
👉 Want to catch the conversation replay or read more?
📲 Link in bio to the full recap
📌 And DM me to get early access to my new Credit Boss Lady app
#CreditChat #JeanneKelly #FinancialEmpowerment #BankruptcyRecovery #CreditBossLady #NoShameInTheGame
