We’re often asked how long bankruptcy stays on one’s credit report. First, you should understand where bankruptcy appears on your credit report. It becomes part of the Legal Records on your report, alongside tax liens and court judgements.
As explained in an article from Free Credit Report, the length of time depends on which chapter you file. Chapter 7 bankruptcy, in which you do not repay your debts, generally stays on your credit report for 10 years from the filing date. Chapter 13 bankruptcy, in which you repay at least a portion of your debts, will remain on your credit report for 7 years. There are some instances in which the bankruptcy is on your report for longer or shorter periods of time, Free Credit Report states. However, the 10 and 7 years are most common for bankruptcy.
However, the article notes, it often isn’t the Legal Record that causes the biggest hit to your credit rating. Other things that cause a big impact include having less than two open credit cards, which prevents you from getting bonus points, and penalties to your score due to serious delinquencies.
Bankruptcy can provide relief from debt and end the calls from creditors and collection agencies. However, it does not come without consequences, including years on your credit report and other impacts. Troy, Ohio Bankruptcy Attorney Chris Wesner invites you to contact us so that we can help you fully understand both the benefits and the consequences you face if you decide to file for bankruptcy and to learn about other options that may be available for your situation.