There were 844,495 bankruptcy cases filed in 2015 in Virginia and throughout the country, and 97 percent of those cases were filed by individuals. Those individuals had a median income of $34,392 and median expenses of $30,972 when they filed. In the past, those who filed for bankruptcy may have been seen as people who were irresponsible with their money. However, the system exists to allow people to take risks in a capitalist society.
Virginia consumers who have ever filed for bankruptcy or are considering it might assume that it ruins their chances of ever having good credit again. But in actual fact, there is a time limit for bankruptcy to remain on a person's credit report, and when it is removed, rebuilding credit to the good score range is quite possible. Not all negative information remains on a credit report for the same amount of time. Late payments remain for seven years, as does Chapter 13 bankruptcy. But Chapter 7 bankruptcy remains for 10 years.
Imagine that after graduating from college, you find a job that makes you proud and allows you to live the life you've always wanted. As the months and years pass, you keep saving to make a big purchase, such as putting a down payment on a house. But suddenly, it all comes crashing down. You get into a car accident and have to pay thousands of dollars to deal with it. You suffer a medical emergency soon after, embroiling you in medical debt. And on top of it all, the credit card debt that you usually pay off on time is now too much for you to handle.