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Bankruptcy Lawyers: How Long Will Bankruptcy Stay on Credit Reports?

really bad credit report on a table


By:Mike Cibik


Many people consider filing for bankruptcy if they struggle with debt and have financial difficulties. While bankruptcy may help you gain financial freedom, it is not a permanent solution. You may further face troubles in securing loan or credit due to the appearance of bankruptcy on your credit report. Hence, you may want to know how long the bankruptcy will keep showing up on your credit report?


The Significance of Chapter 7 & Chapter 13 Bankruptcy


Usually, the negative items including bankruptcies appear on the credit report approximately for seven years. This is categorized under foreclosures, Chapter 13 bankruptcies, unpaid taxes, late payments, and collections. Chapter 7 bankruptcy remains on the credit report for up to 10 years.


Though, both the chapters are applicable on bankruptcy cases, people with low income mostly qualify for Chapter 7. While Chapter 7 eliminates all debts, a Chapter 13 bankruptcy restructures debts. Most debtors prefer Chapter 13 bankruptcy, as it allows them to keep their assets and repay only a portion of the debt.  These debtors can repay some money and are people with higher incomes. Though Chapter 7 bankruptcy is easier and faster, it’s serious and thus, it remains on the credit report for a longer period of time.


However, the bankruptcy timelines may also differ depending on the fact whether bankruptcy was discharged or dismissed by your credit reporting agency. For instance, Equifax keeps dismissed bankruptcy for 10 years, while discharged Chapter 7 bankruptcy stays for seven years on the report.


Sources of Credit Report


You can obtain a copy of your credit report either from Experian or Equifax or the Transunion. Your Credit report will show the credit card accounts, loans, payment history and balances, liens and bankruptcy. Consider your credit report before applying for fresh credit. In case you have any doubt, contact your bankruptcy lawyer immediately.


Timelines of Bankruptcy


It usually depends upon the category of negative information. The following breakdown will help you understand the bankruptcy timelines on your credit report:


  • Public Record – Normally 7 years, however, unpaid taxes may remain for an indefinite period.
  • Foreclosures – Will remain on your report for 7 years
  • Bankruptcies – 7 years for Chapter 13 and 10 years for Chapter 7 bankruptcies.
  • Collections – Normally 7 years, depending upon the period of the debt being collected.
  • Late payments – Similar to foreclosures, it remains on the record for 7 years.


These are the most common information about bankruptcy timelines. If you are stuck in financial difficulties, discuss your case with a Philadelphia bankruptcy lawyer in order to get the most appropriate suggestion.


Bankruptcy Attorney


If you are looking to buy a new home or car, filing for bankruptcy may shatter your dreams. Consulting a Philadelphia bankruptcy lawyer can help you save your property such as your vehicles and your home and would help you make a new financial start.



Future Lenders become alert


If you have filed for bankruptcy in order to wipe out credit card debt, your future lenders may become attentive in lending you further debts. Your creditors might also refuse to extend credit or offer you credit on a greater interest rate.


Though you may face difficulties in obtaining insurance, mortgage loan, or a credit card, some lenders may still want to do business with you. Creditors may find you less risky since they know that you would not be allowed to file for another bankruptcy for several years.


Also, the discharge you obtain from bankruptcy liberates all your future earnings from the past creditors’ claim. Eventually, you become a prospective customer for them as you have more funds on hand to spend.


Since bankruptcy comes with various pros and con it is not advisable to file for bankruptcy merely for wiping out credit card debt.  There are various alternatives you may consider in place of bankruptcy. Consult your bankruptcy attorney immediately to get the best suggestion for your case.

A bankruptcy may drastically affect your life and limit your capability to secure loan and debt in the future. It may stay on your credit report for many years and may possibly disrupt your financial position. If you’re considering filing for bankruptcy, talk to one of our experienced Philadelphia bankruptcy lawyers at 215-735-1060. We have helped thousands of people make informed decisions and give them a way to start fresh.


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