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How Long Does Bankruptcy Stay On Your Credit Report?

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Posted on January 22, 2025 in

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.

How Long Will Bankruptcy Affect My Credit Score?

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:

  • Your credit score may temporarily increase after bankruptcy filing
  • Higher initial scores experience larger point drops
  • Credit score recovery begins immediately 
  • Secured credit cards can help rebuild credit
  • Regular credit monitoring is essential for improvement

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.

how long does a bankruptcy stay on your credit report

How Do I Know When My Bankruptcy Is No Longer on My Credit Report?

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.

Where Does Bankruptcy Appear on My Credit Report?

Bankruptcy appears in two main sections of your credit report:

Public Records 

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.

Account Information

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.

What Should I Do if the Bankruptcy Is Still on My Credit Report After 10 Years?

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:

  • Obtain free credit reports from all three bureaus
  • Identify which reports still show the bankruptcy
  • Draft a dispute letter detailing the inaccuracy
  • Include supporting documents proving the discharge date
  • Submit disputes to relevant credit reporting agencies

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. 

Is it Possible to Remove Bankruptcy From My Credit Score Early?

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. 

Get a Consultation From a Phoenix Bankruptcy Attorney

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.

Frequently Asked Questions About Bankruptcy in Arizona

Here are some questions many people have about bankruptcy and their credit.

How does bankruptcy get reported to credit bureaus?

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.

Can credit repair companies remove bankruptcy from credit reports?

Credit repair companies cannot remove bankruptcies before the standard timeframe. They may offer other services to help you rebuild your credit instead.

Does the impact of bankruptcy on credit score lessen over time?

The negative impact of bankruptcy diminishes as time passes. Consistent positive financial behavior can further accelerate this improvement.

When does the 7 or 10-year period start for bankruptcy reporting?

The reporting period starts from the filing date of the bankruptcy. It’s essential to keep track of this date for future reference.

Are all debts included in bankruptcy reported the same way?

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.

Can you get new credit while bankruptcy is on your report?

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.

Does bankruptcy affect all three credit bureau reports equally?

Bankruptcy should be reported consistently across all three major credit bureaus. However, discrepancies can occur, so checking each report individually is wise.

Can you rebuild credit while bankruptcy is still on your report?

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.

Is bankruptcy automatically removed from credit reports?

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.

Can employers see bankruptcy on credit reports?

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.

Can you get a mortgage while bankruptcy is on your credit report?

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.