In the modern world, your value is measured based on your credit report.
It’s the only way a potential creditor knows about your financial situation. Many employers check your credit before offering you a job. Insurance companies use credit scores to determine the rates you pay. And that’s just scratching the surface of the ways your credit report affects your life.
That’s why you should review your credit reports regularly after your bankruptcy case is finished, and take the simple steps to repair your own credit.
Most people also want to remove the bankruptcy from their credit records because they worry about the impact it will have on their ability to get a new mortgage, car loan, or job.
Before you start to panic, here are the facts.
How Long Until Bankruptcy Falls Off Your Credit Report?
Talk to different bankruptcy attorneys and credit professionals, and you’re sure to get just as many answers about the length of time the bankruptcy stays on your credit report before it is removed.
According to Experian, the credit reporting agency:
The bankruptcy record from the court is deleted either seven years or 10 years from the filing date of the bankruptcy depending on the chapter you declared.
Chapter 13 bankruptcy is deleted seven years from the filing date because it requires at least a partial repayment of the debts you owe. Chapter 7 bankruptcy is deleted 10 years from the filing date because none of the debt is repaid.
Individual accounts included in bankruptcy often are deleted from your credit history before the bankruptcy public record. Usually, a person declaring bankruptcy already is having serious difficulty paying their debts. Accounts are often seriously delinquent before the bankruptcy.
All delinquent accounts are deleted seven years from the original delinquency date, which is the date the account first became delinquent and was never again current. Declaring bankruptcy does not alter the original delinquency or extend the time the account remains on the credit report.
If the account was delinquent before being included in the bankruptcy, it will probably be deleted before the bankruptcy public record because the original delinquency date is typically earlier than the bankruptcy filing date.
(The boldface is mine, by the way)