How long does bankruptcy stay on your credit report?
It will take years for bankruptcy to fall off your credit report, but you can still repair your credit.
A bankruptcy will remain on your credit reports for seven to 10 years, depending on how it was filed. The good news is that it won’t follow you forever.
How long does bankruptcy stay on my credit report?
Chapter 7 bankruptcy stays on your credit reports for up to 10 years starting on the date you filed. It’s also known as the liquidation bankruptcy.
Chapter 13, or the repayment or reorganization bankruptcy, can remain on your credit report for up to seven years — also starting on the day you filed. But most Chapter 13 repayment plans are for three to five years, so by the time you’re discharged, or you’ve completed it, it’s nearly time for all accounts associated with it and the bankruptcy itself to fall off your credit reports.
The good news is that bankruptcy doesn’t follow you around forever — but the bad news is that it takes years to completely disappear. Accounts associated with your bankruptcy will disappear after seven years, but the report of the bankruptcy itself will remain for up to 10 years since that information is from the Bankruptcy Court public records.
How do I get bankruptcy removed from my credit reports?
You can’t remove accurate reporting of a bankruptcy from your credit reports. The credit bureaus receive bankruptcy information from the Bankruptcy Court public records.
The Fair Credit Reporting Act (FCRA) protects your information collected by consumer reporting agencies, such as credit bureaus, and they’re obligated to report correct information. If the bankruptcy reporting is correct, it will remain on your credit report for seven to 10 years.
How to repair credit during and after bankruptcy
It can take a while for your credit score to recover after bankruptcy. Over time, the impact of a bankruptcy on your credit score will decrease. Also, the more accounts you included in your bankruptcy, the bigger the impact on your credit score, according to FICO.
Here are six tactics you can use to start repairing your credit score after bankruptcy:
- Avoid applying for new credit. Unless it’s an emergency or a necessity, avoid applying for new credit if you can help it and high-interest debt such as credit cards, personal loans or payday loans. A new credit application can result in a hard credit pull, which can lower your credit score even further.
- Pay everything on time. Payment history is the most important factor in your FICO credit score, so staying on top of all your expenses is vital to credit repair. Even if a bill’s on-time payments aren’t reported to the credit bureaus, there’s still a chance that a late or missed payment is reported.
- Keep credit card balances low. Keeping your credit utilization ratio below 30% is a good way to keep your credit score healthy. Owing more than 30% of your total credit limit is a sign you’re overextended financially, so it can result in a lower credit score.
- Regularly review your credit reports. You can get free, weely copies of your credit reports from all three credit bureaus. Review them on a regular basis for signs of identity theft, correct any errors that may be harming your credit, and know that your bankruptcy filing is removed from your reports when it’s supposed to.
- Look to credit-building products. Consider credit-building loans, debit-credit cards or secured credit cards. These borrowing methods are considered safer than unsecured debt, and are often easier to qualify for.
- Become an authorized user. If someone you know is willing, you can ask them to add you as an authorized user on their credit card.
Compare credit-building cards
Narrow down top credit-building cards by fees, APR and benefits. For a better comparison, you can also select the Compare box on multiple options to see benefits side by side.
Bottom line
Filing for bankruptcy is the first step in organizing your finances, and credit repair after it can take time. During the bankruptcy process, your credit score may have been the least of your worries.
Soon after you’re discharged, lenders may be wary to extend you new credit due to the filing — but that won’t last forever. Be patient with yourself, keep an eye on your credit reports and minimize borrowing until you’re back on your feet financially.
More guides on Finder
-
10 emergency loans for good and bad credit in 2024
Emergency payday loans can give you quick and easy access to funds. Compare your options and find a lender to help see you through.
-
Self credit builder review
Self offers rent and utility reporting, credit-building loans and more to help boost your credit score.
-
Kikoff Credit Building review
Kikoff offers several credit-building products, including a secured card with no monthly fee, no interest charges and a low minimum deposit.
-
Largest banks in the US in 2024
If the Capital One and Discover merger goes ahead, it will be the 6th biggest bank in the US.
-
Bitcoin Pizza Day
What would the 10,000 BTC spent on Bitcoin Pizza Day be worth today?
-
What is a SEP IRA and how does it work?
What you need to know about SEP IRAs and how these retirement accounts work.
-
Best home improvement loans of 2024
Learn about the top home improvement loans. Compare rates, terms and benefits from the leading lenders, plus other ways to finance your home improvements.
-
Primis Bank: Checking, savings, CDs and business banking
Primis Bank is a legitimate bank that operates mostly online and offers very competitive APYs, rewards accounts and few fees.
-
Experian Boost review: How it works
Experian Boost is a free credit-building tool that helps you build credit with rent payments, utility payments and streaming service subscriptions.
-
What is a SIMPLE IRA and how does it work?
SIMPLE IRAs can help small-business owners and their employees save for retirement with tax benefits.
Ask an Expert