How Long Does Bankruptcy Stay on Your Credit Report?
4 Min Read | Last updated: January 7, 2025
How long a bankruptcy stays on a credit report varies, but it can last for years. Here are tips to manage credit before and after filing for bankruptcy.
At-A-Glance
- When someone declares bankruptcy, their circumstances can determine how their debt is restructured or discharged and how it affects their credit score.
- Chapter 7 bankruptcy may stay on your credit report for ten years, while chapter 13 can remain for seven years from the filing date.
- Even though bankruptcy can result in damage to your credit, there are steps that you can take to rebuild your credit over time.
In this article, we’ll look at what you can expect before filing for bankruptcy and show you steps you can take to rebuild your credit again.
How Long Bankruptcy Stays on Your Credit Report
Bankruptcy can stay on your credit report for different lengths of time, depending on the type of filing:
- Chapter 7 bankruptcy
A Chapter 7 bankruptcy generally stays on a credit report for ten years from the filing date.1 - Chapter 13 bankruptcy
A Chapter 13 bankruptcy typically remains on a credit report for seven years from the filing date.2
These timeframes can vary based on individual circumstances and the credit reporting agency, but these are the standard durations. After this period, the bankruptcy should automatically fall off your credit report.
Two common forms of personal bankruptcy may be Chapter 7 and Chapter 13. Each has its own rules and requirements:
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is also known as liquidation bankruptcy. It involves the forfeiture of property to a trustee that’s appointed by the bankruptcy court. The property is then sold and distributed among the creditors. This type of bankruptcy can stay on your credit report for ten years.3
Chapter 13 Bankruptcy
Chapter 13 can be used by individuals with sufficient income to keep more of their assets. With this type of bankruptcy, monthly payments are made to a trustee for a span of three to five years, which are used to repay creditors. This type of bankruptcy can stay on your credit report for seven years.4
How Bankruptcy Affects Your Credit Score
The exact impact of bankruptcy on your credit score may be hard to predict. However, there may be a significant impact on your credit scores and credit reports. This means that it may be more difficult to qualify for new forms of credit with favorable terms. It may also impact your ability to rent a home or find a job since landlords and employers often do credit checks as well. The good news, though, is that the impact of bankruptcy on your credit score may not be final. You can still take steps after bankruptcy to rebuild your credit.
Because credit scores are based on a variety of factors, not everyone is impacted by bankruptcy in the same way. Your credit score before the filing could also influence how much your credit score is impacted. According to Debt.com, those with good credit could face a 150 to 200-point drop. However, this will vary on a case-by-case basis.5
Can You Remove Bankruptcy from Your Credit Report?
Unfortunately, you may not be able to remove bankruptcy from your credit report. Instead, you will need to wait for the allotted period to pass by, at which point it should drop off automatically.6
Rebuilding Your Credit After a Bankruptcy
It can be important to remember that credit scores are not fixed numbers, and individuals can take steps to rebuild their credit even before a bankruptcy gets erased.
There are a number of ways that you can go about rebuilding your credit after bankruptcy. Here are some steps that you may want to take:
- Check Your Credit Report
You can start by obtaining a copy of your credit report. This can allow you to see where you stand credit-wise and can give you a chance to look for any potential errors that could be holding your credit back.
- Open a Secured Credit Card
A secured card can be obtained more easily than a traditional credit card. You can use your secured card responsibly to start rebuilding credit.
- Pay Credit Card Bills on Time
Consistently paying your credit card bills on time can be crucial for building a positive credit history.
- Keep Credit Utilization Low
Your credit utilization ratio, which falls under the revolving credit section of your credit score can also impact your credit score. You may want to work to keep this ratio low by using less than 30% (and ideally, even less) of your available credit.
Rebuilding credit takes time, so stay committed to good financial habits.
The Takeaway
Knowing the impact that bankruptcy can have on a person’s credit score can help them decide whether it’s the right step in their situation. In some cases, choosing the right type of bankruptcy with a legal or debt counselor can help eliminate debt and provide a fresh start. Bankruptcy filings appear on credit reports for seven to ten years, but even with those long timelines proper credit management can help raise a person’s credit score to higher levels, potentially sooner than you might think.
1,2,3,4 “When Does Bankruptcy Fall Off My Credit Report?,” Experian
5 “How Does Bankruptcy Affect Your Credit?,” Debt.org
6 “How to Remove Bankruptcy From Your Credit Report,” Experian
Ryan Lynch is a freelance writer, educator, and musician whose work concentrates on finance, STEM, and the arts.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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