Wise Certification Practice Test

Question: 1 / 400

How long does the fact of declaring bankruptcy remain on a person's credit report?

7 years

10 years

The correct duration for which a bankruptcy filing remains on a person's credit report is 10 years. This reflects the serious nature of bankruptcy, as it indicates significant financial distress and is considered a major derogatory mark on a credit report. The 10-year period allows potential creditors to assess the risk involved in lending to someone with a history of bankruptcy.

During this time, an individual's credit report will show the bankruptcy filing, which can affect their credit score and ability to obtain new credit. After the 10 years, the record of the bankruptcy is removed from the credit report, allowing the individual to begin rebuilding their credit history free from that negative mark. Understanding the implications of bankruptcy on credit reporting is crucial for anyone considering this financial path, as it impacts future borrowing opportunities and overall creditworthiness.

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5 years

15 years

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