How Long Will Bankruptcy Stay on My Credit Report?

After Bankruptcy, derogatory or negative information remains on your credit report between seven and ten years.  However, the Fair Credit Reporting Act (FCRA) specifically addresses Bankruptcy information, and its terms have led to some confusion among the general public, credit "experts," and even some Bankruptcy attorneys.

The FCRA permits credit reporting agencies to keep information on a person's credit report for up to ten years. The FCRA does not mandate that reporting agencies list the Bankruptcy for ten years; only that Bankruptcy information must be removed from the individual's credit report at that time.  While the FCRA does not distinguish between Chapter 7 and  Chapter 13 cases, each credit reporting agency has its own policy for removing a Bankruptcy case as a public record.  Generally, Chapter 7 cases are reported for ten years and Chapter 13 cases are reported for seven years.

The FCRA directs credit reporting agencies to exclude Bankruptcy case information from a former debtor's consumer report ten years after "the date of entry of the Order for Relief." The "Order of Relief" is a Bankruptcy term defined under Section 301 of the U.S. Bankruptcy Code as the date the Bankruptcy case is filed.  The day the Bankruptcy case is filed triggers the 10 year period.  For instance, if a case was filed on January 1, 2011, the Bankruptcy record must be removed from the credit report before January 1, 2021.

Many of my clients worry about the consequences of Bankruptcy on their credit report. While this is a valid concern, the focus should always be on erasing or reducing the debt and starting over.  Eventually, you will rebound from the Bankruptcy and start building credit again.  Despite the seven to ten year reporting period, most of my clients obtain new credit within twelve to eighteen months of the Bankruptcy discharge. 

Understanding the laws governing Bankruptcy and how they apply to your situation is an important part of gaining a new start. To overcome your financial struggles, please call the Law Office of Nicholas R. Westbrook at (713) 893-6204.  As a Houston Bankruptcy attorney, I can help.  My firm is a debt relief agency that works diligently to erase or significantly reduce overwhelming debt through Chapter 7 or Chapter 13 Bankruptcy.  The road to financial freedom starts here!