How Long Will a Bankruptcy Be On My Credit Report?

Bankrupt in Houston

Bankrupt in HoustonThe answer to this question is straight forward – a Chapter 7 bankruptcy will remain on your credit report for 10 years from the date of filing, and a Chapter 13 bankruptcy will remain on your credit report for 7 years from the date of filing.
A better question to ask, however, is how can bankruptcy help my credit score? If you are currently missing payments or making late payments, your creditors may be reporting this every 30 days, which damages your credit score. When a bankruptcy is filed, however, you are protected from future reporting of missed payments, and any creditors who have been reporting a missed payment or late payment must stop after a bankruptcy is filed. For most debts the reporting of missed payments will stay on your credit report for 7 years.
In addition, the total debt will be decreased by the amount of debt that is discharged. Both the cessation of the reporting of missed or late payments and the reduction (or sometimes elimination) of total debt will help a credit score increase, especially given some time. The older the negative items are the less they will damage your credit score.
A bankruptcy is just one of many items that are listed on a credit report and one factor of many that goes into calculating a credit score.  Timely payments, missed payments, and/or the existence of any lawsuits or judgments will also show on a credit report for 7-10 years.
The information contained in this blog is for general information and educational purposes and is not legal advice. Reading these posts does not create an attorney/client relationship.