How Long Does A Chapter 13 Bankruptcy Stay On Your Credit Report?

‍How Long Does A Chapter 7 Bankruptcy Stay On Your Credit Report?

More often than not, a Chapter 7 bankruptcy filing will remain on your credit report for a period of ten years after filing your Chapter 7 petition. You should read more about the Chapter 7 bankruptcy process if you want to file for one.

Credit reporting agencies do not have the right to report a bankruptcy filing more than ten years after the initial filing.

How Does The Credit Reporting Agency Find Out About My Bankruptcy Filing?

A bankruptcy file is a public record, as such, credit card reporting agencies have the right to routinely check the records of a bankruptcy court for filings. Credit agencies check to make sure the reported Social Security number is correct. The credit reporting agency will report the bankruptcy case on your credit history.

Anytime you file a Chapter 7, your credit report should be updated to reflect that you filed a bankruptcy case. You will see “account included in bankruptcy” as your account status when you file for bankruptcy. After your case must have the discharged and closed, your account status will be updated to “discharged in bankruptcy.”

An account that applies for a Chapter 13 bankruptcy will be treated in likewise manner; however, due to the fact that Chapter 13 bankruptcy is a repayment plan, the account will only change after you’ve paid your repayment plan and received a discharge.

The procedure of credit reporting agencies for reporting a credit report differs; regardless, the credit reporting bureau has to follow the law.

Why Does My Bankruptcy Filing Show Up On A Credit Report?

You will start seeing a bankruptcy filing on your credit report after a few days of filing for a Chapter 13 or Chapter 7 bankruptcy. Therefore, the exact time that a bankruptcy filing will start reflecting on your account depends solely on the credit reporting agency. However, regardless of the time the credit reporting agency adds the filing to your credit report, the bankruptcy filing must be removed from your credit report after ten years of filing for bankruptcy.

How Can I get a bankruptcy Filing Removed From My Credit Report?

Unfortunately, credit bureaus cannot remove bankruptcy from your report before seven years. As such, you can remove a bankruptcy filing from your credit report only in instances where the detail on your credit report is wrong.

If you notice incomplete or inaccurate information, request an investigation on your account. If, after investigation, it was noticed that the information is not accurate, the credit reporting agencies will get rid of that information, and it will be replaced with the right information.

How Long Does a Credit Account Stay On My Credit Report after bankruptcy?

Luckily, after a period of seven years, credit bureaus will remove your bankruptcy from your report. If you have something on your credit report after seven years, contact your credit reporting bureau.

You should contact your creditor if your report is not showing an accurate reflection of your bankruptcy repayment plan. You should also send copies of your bankruptcy form to the credit reporting agencies.

How Does The Bankruptcy Filing Impact My Day-to-Day Financial Management?

Typically, there is already damage to someone's credit score prior to filing for bankruptcy. Debt collections, late payments, and other negative financial information will negatively impact a person’s credit score. Although filing for bankruptcy can reduce a person’s credit score, the extent of the drop depends on the credit score of the individual when they file for bankruptcy.

After getting a bankruptcy discharge, you can start rebuilding your credit rating. Here are some tips for improving credit score after getting a bankruptcy discharge:

• Get free copies of your credit reports and go through each report for mistakes or errors. You should work with your credit reporting agencies and creditors to modify any errors noticed. You can get copies of your credit report for free on a 12-month cycle. Regularly monitor for errors.
• Always keep up with your payment schedule as late payment can adversely affect your credit score.
• Have a budget and live within it. To effectively manage your debt, you should have a top-notch knowledge of financial management. Use the available debt management tools provided during your Debtor Management Course.
• Use online management and budgeting tools to create a great budget and properly manage your finances.
• Request for a secured credit card: The credit card company will require that you deposit money with them. You just have to ensure that the credit card company sends a report on your behalf to the credit reporting agencies as it is a great way to boost your credit after getting a bankruptcy discharge.
• Learn more about credit reports by visiting USA.gov and Federal Trade Commission

Should I File For Bankruptcy Quiz

There are potential costs, credit report, and duration implications of filing Chapter 13 bankruptcy vs pursuing a bankruptcy alternative.

As such, you can take the informational should I file bankruptcy quiz below that can help you compare Chapter 13 bankruptcy vs other options. The calculator will estimate cost, duration and potential pros and cons of each option. Please note that this is for informational purposes only based on your financial data that you enter.