Key Takeaways:
- A bankruptcy can remain on a credit report for up to 7 or 10 years, depending on the type.
- Bankruptcies can have a negative impact on your credit score
- You can build healthy credit and recover from a bankruptcy with consistent good habits
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If you’ve made the hard choice to file for bankruptcy, you may be wondering about the impact on your credit. Specifically, how long does bankruptcy stay on your credit report? As you’ll see below, it primarily depends on the type of bankruptcy.
When is bankruptcy removed from your credit report?
Chapter 7, 11 and 12 bankruptcies can stay on your credit report for up to 10 years from the date the bankruptcy was filed, while a Chapter 13 bankruptcy will fall off your report seven years after the filing date.
After the allotted seven or 10 years, the bankruptcy will automatically fall off your credit report.
| Information Type | How Long the Information Stays on Your Report? |
|---|---|
| Accounts closed in good standing | 10 years |
| Missed payments | 7 years |
| Collections | 7 years |
| Bankruptcies | Chapter 7: 10 years Chapter 11: 10 years Chapter 12: 10 years Chapter 13: 7 years |
Where does bankruptcy appear on your credit report?
If you’ve declared bankruptcy, it will appear in the public records section of your TransUnion credit report. You may also see references to your bankruptcy within the account information section, as your creditors may report one or more of your accounts as included in bankruptcy.
Can you remove bankruptcy from your credit report?
In most cases, no: You cannot remove a bankruptcy from your credit report. Remember, it will be removed automatically after seven or 10 years, depending on the type of bankruptcy you filed.
In the rare case that the bankruptcy was reported in error, you can get it removed. If you see a bankruptcy on your credit report that you didn’t file, here’s how to dispute your credit report.
If you’re ready to dispute information on your credit report, you can do so online for free through the TransUnion Service Center. Note, if you have supporting documents you want to include with a bankruptcy related dispute, TransUnion does not currently support document uploads online for public record disputes. If you have documents you want to include with a public record dispute, you will need to submit the dispute by mail.
How does a bankruptcy impact your credit score?
A bankruptcy can have a negative impact on your credit score. How much your credit score will drop will depend on your personal credit history. Several factors make up your credit score. Two important factors include your payment history and credit utilization. Prior to declaring bankruptcy, your score may have declined due to missed payments and an increase in credit balances. Like other negative information on your credit report, the credit score impact of a bankruptcy will lessen over time.
How can you rebuild credit after bankruptcy?
Declaring bankruptcy is a major decision, and it can have a big impact on your credit. However, the effects won’t last forever. With time and consistent good credit habits, you can build a healthy credit history. Good credit habits include:
- Making all payments on time
- Keeping balances as low as possible
- Monitoring your credit regularly
- Borrowing what you can realistically afford to pay
To learn more about how you can improve your credit health, one step at a time, check out this blog on how to rebuild your credit.
