How long bankruptcy stays on your credit report depends on the type of bankruptcy you file. Chapter 7 bankruptcy remains for 10 years from the filing date, while Chapter 13 bankruptcy stays for 7 years. These timeframes are set by the Fair Credit Reporting Act and enforced by the Federal Trade Commission (FTC).
Once the period is up, the bankruptcy is automatically removed from your credit report. You don’t need to take any action for this to happen. However, if you notice the bankruptcy still on your report after the appropriate time has passed, you can dispute it with the credit bureaus.
Contact Stone Rose Law if you need to file Chapter 7 or Chapter 13 bankruptcy or need help removing it from your credit report after 10 years.
Bankruptcy can impact your credit score for several years. Your credit score can drop by 130 to 240 points immediately after filing bankruptcy, depending on your initial score. However, the recovery is fairly quick. Most will see a credit score in the 600s within one year of filing and will see a score in the 700s by the two-year mark.
Here are some things to consider:
Despite your credit report, you can start rebuilding your credit immediately after bankruptcy. Start responsible financial habits, such as timely monthly payments and using credit as little as possible. With consistent effort, you may see noticeable improvements in your credit score within two years, even though your bankruptcy record remains.
Monitor your credit reports from all three major credit bureaus: Equifax, Experian, and TransUnion. Set a reminder to check your reports regularly, especially as you approach the expected removal date. You can access your free annual credit reports from each bureau at AnnualCreditReport.com, the official site authorized by federal law.
When reviewing your credit reports, look for the “Public Records” section, where bankruptcy information is listed. If you don’t see any bankruptcy entries, it may have been removed. However, to be certain, scan the entire report for any mentions of bankruptcy or related accounts. If you find the bankruptcy has been removed from one report but not others, contact the bureaus individually.
Bankruptcy appears in two main sections of your credit report:
First, it is listed in the public records section, which includes information obtained from court filings. Here, you will see details such as the type of bankruptcy (Chapter 7 or Chapter 13) and the bankruptcy filing date, indicating when the bankruptcy was officially recorded.
Bankruptcy may be reflected in the account information section of your credit report. Creditors will report accounts as “included in bankruptcy,” showing that those debts were discharged through the bankruptcy process. It’s important to review both sections to ensure that all bankruptcy-related information is accurate and up-to-date, as this can impact your credit score and future borrowing opportunities.
If your bankruptcy is still on your credit report after 10 years, you can dispute it. You’ll need to take action to ensure the bureaus correct this error at the end of the bankruptcy process.
To address this issue, you can take the following actions:
After you submit the dispute, the credit bureaus have 30 days to investigate and respond. If they can’t verify the information, they must remove the bankruptcy from your report. Monitor your credit reports closely after filing disputes to ensure the changes are made.
Removing bankruptcy from your credit report before ten years is challenging but not impossible. The most effective method is to verify the accuracy of the bankruptcy filing and challenge any potential errors.
At Stone Rose Law, we help our clients go from financial hardship to financial freedom. Contact us today and let us help you get started with your Chapter 7 or Chapter 13 bankruptcy.
Fill out our online form or call Stone Rose Law at (480) 498-8998 to get a consultation from our Phoenix bankruptcy attorney.
Here are some questions many people have about bankruptcy and their credit.
Bureaus collect bankruptcy information from public records, not directly from courts. Any delays in public record updates can affect how quickly they appear on your report.
Credit repair companies cannot remove bankruptcies before the standard timeframe. They may offer other services to help you rebuild your credit instead.
The negative impact of bankruptcy diminishes as time passes. Consistent positive financial behavior can further accelerate this improvement.
The reporting period starts from the filing date of the bankruptcy. It’s essential to keep track of this date for future reference.
Individual accounts included in bankruptcy should be removed after 7 years. However, some creditors may report differently, so it’s important to check each account’s status.
Yes, but it may be more difficult and come with less favorable terms. Lenders will likely view you as a higher risk due to your recent bankruptcy.
Bankruptcy should be reported consistently across all three major credit bureaus. However, discrepancies can occur, so checking each report individually is wise.
You can start rebuilding credit immediately after a bankruptcy discharge. Using a secured credit card or small loans responsibly can help improve your score over time.
Bankruptcy should be automatically removed after the reporting period ends. It’s still important to check your reports periodically to ensure this occurs as expected.
They will see your bankruptcy if they conduct a credit check as part of their hiring process. Some employers may consider this information when making hiring decisions.
It’s possible, but you may need to wait a certain period of time and meet specific requirements. Lenders often have guidelines regarding how long after bankruptcy they will consider an application for a mortgage.