Unexpected events like job loss and medical issues can result in financial hardship. If someone reaches a point where they are overwhelmed financially and they’ve exhausted all other options, bankruptcy is an option. Declaring bankruptcy is a big decision and it has a significant impact on a person’s credit. Once the bankruptcy filing is listed on a credit report, it has the potential to affect the score for years. Let’s take a look at why bankruptcy negatively affects a credit report and how long the declaration remains on the report.