When people file Chapter 7 and 13 bankruptcies, they’re usually focused on filling out all of the necessary paperwork and after all is said and done, on rebuilding their credit. They rarely think much about when and how the bankruptcy falls off their credit report. “It’s been almost 10 years since I filed Chapter 7. What do I need to do to get it removed from my credit on the 10-year anniversary?”
In the above situation, usually the debtor doesn’t need to do anything to have their Chapter 7 bankruptcy removed from their credit report. Why? Because, Chapter 7 and 13 bankruptcies and all of the “included” or “discharged” debts are deleted automatically after a specified period of time passes.
Chapter 7 vs. Chapter 13 Credit Reporting
How long will it take for a bankruptcy to fall off your credit report? It depends on which Chapter you file. A Chapter 7 bankruptcy is deleted automatically by the credit bureaus after 10 years from the filing date. A Chapter 13 is deleted automatically after 7 years from the filing date.
“Are there any exceptions?” Occasionally. While the credit bureaus are pretty good about deleting bankruptcies within the 7 to 10-year timeframes, occasionally one slips through the cracks. If you run your credit and see that a bankruptcy is being reported, even though it shouldn’t be anymore, all you have to do is notify the credit bureau online of the error and it should take the necessary steps to correct it.
Some Accounts Fall Off Sooner
When a debtor includes accounts in a Chapter 7 or 13, they can remain on the debtor’s credit report for up to 7 years, even though the bankruptcy itself is reported for 7 to 10 years depending on which bankruptcy is filed.
Usually, those who file bankruptcy are already seriously delinquent on their accounts before they file bankruptcy. If a debtor’s account was delinquent before they filed bankruptcy, it will be automatically deleted from their credit 7 years from the date the debtor originally defaulted on the account (the date the debtor was first late).
When a person files bankruptcy, it does not extend the original delinquency date on an account; therefore, an account may be deletedbeforethe bankruptcy falls off the credit report – so that’s good news.
To find out if bankruptcy is right for you, contact our firm to meet with a Harrisburg bankruptcy attorney for free!