Filing for bankruptcy can bring relief from overwhelming debt, but it’s natural to worry about how it will affect your credit. One of the most common questions people ask is: “How long will bankruptcy stay on my credit report?”
While bankruptcy does impact your credit for several years, it’s not a permanent mark. More importantly, its effect lessens over time as you rebuild financial stability. Understanding how long bankruptcy remains on your record—and what you can do to recover—can help you make smarter financial decisions moving forward.
The Basics: How Bankruptcy Appears on Your Credit Report
When you file for bankruptcy, it becomes part of your public record and is reflected on your credit report under the “public records” section. Credit reporting agencies—Experian, Equifax, and TransUnion—are legally required to report bankruptcy information accurately, but the duration it remains depends on the type of bankruptcy you file.
There are two main types of personal bankruptcy:
- Chapter 7 Bankruptcy (Liquidation)
- Chapter 13 Bankruptcy (Repayment Plan)
Let’s explore how long each one stays on your credit report.
How Long Does Chapter 7 Bankruptcy Stay on Your Credit Report?
A Chapter 7 bankruptcy—the most common type—remains on your credit report for 10 years from the date of filing.
This form of bankruptcy involves liquidating (selling) non-exempt assets to pay creditors. Once the court grants your discharge, your qualifying debts are eliminated, giving you a clean financial slate.
Although 10 years may sound like a long time, its impact on your credit score diminishes significantly after the first two to three years—especially if you take proactive steps to rebuild credit.
How Long Does Chapter 13 Bankruptcy Stay on Your Credit Report?
A Chapter 13 bankruptcy, on the other hand, remains on your credit report for 7 years from the date of filing.
In Chapter 13, you create a court-approved repayment plan that typically lasts three to five years. Because you repay part or all of your debts through this plan, credit bureaus treat Chapter 13 as less severe than Chapter 7.
After completing your repayment plan and receiving a discharge, your credit report will still note the bankruptcy for a few more years—but its impact fades much sooner than you might expect.
Why Does Bankruptcy Stay on Your Credit for So Long?
Bankruptcy is considered a major financial event, and credit reporting agencies use it to assess your past borrowing behavior and risk to future lenders. The Fair Credit Reporting Act (FCRA) regulates how long this information can legally remain on your credit report.
However, the law also gives you the right to rebuild your credit immediately after discharge. So while the bankruptcy record may remain visible for several years, its influence over your creditworthiness gradually declines as positive data (like on-time payments and low debt utilization) replaces it.
How Bankruptcy Affects Your Credit Score
When you first file for bankruptcy, your credit score may drop significantly—often by 130 to 200 points. But the actual impact depends on your previous credit history. If your credit was already poor due to missed payments or defaults, the decrease may be less severe.
The good news? You can start rebuilding almost immediately after discharge. Many people see noticeable improvement within 12 to 24 months, as lenders begin to see consistent positive activity on their reports.
How to Rebuild Credit After Bankruptcy
While bankruptcy remains on your record for several years, rebuilding your credit is absolutely possible. Here’s how to accelerate your recovery:
- Check Your Credit Report Regularly
Make sure all discharged debts are marked as “included in bankruptcy” and show a zero balance. Dispute any errors you find with the credit bureaus. - Apply for a Secured Credit Card
These cards require a deposit and are designed for people rebuilding credit. Use the card responsibly and pay off the balance in full each month. - Pay Bills on Time
Payment history makes up 35% of your credit score. Consistent, timely payments demonstrate reliability to future lenders. - Keep Credit Utilization Low
Try to use less than 30% of your available credit limit to show responsible credit management. - Consider a Credit-Builder Loan
Some credit unions and banks offer small installment loans specifically designed to help you establish positive payment history. - Avoid New Debt You Can’t Handle
Stay cautious about taking on new loans or credit cards too quickly. Focus on building sustainable habits first.
By following these steps, you can often qualify for competitive credit cards, auto loans, and even mortgages within a few years of filing.
Can You Remove Bankruptcy from Your Credit Report Early?
Unfortunately, you cannot legally remove a bankruptcy from your credit report before the 7- or 10-year period expires. Any company promising to erase it early is likely a scam.
However, if there’s an error—such as incorrect filing dates or debts wrongly reported as active—you can file a dispute with the credit bureaus to correct or remove the inaccurate information.
The Good News: Bankruptcy’s Impact Fades Over Time
Although bankruptcy stays on your credit report for years, its power over your financial life decreases much sooner. Lenders often focus on your recent credit behavior rather than your past mistakes. Many people who responsibly rebuild after bankruptcy find themselves qualifying for loans or credit cards again within two to three years.
Your financial recovery depends far more on your post-bankruptcy actions than the record itself.
Final Thoughts
While bankruptcy may remain on your credit report for seven to ten years, it doesn’t define your financial future. With consistent effort and smart financial habits, you can rebuild your credit and regain financial confidence long before that time expires.
If you’re considering bankruptcy or need guidance on rebuilding your finances after filing, DeLuca & Associates Bankruptcy Law can help. Their experienced team provides compassionate, knowledgeable support to help you make the most of your fresh start and move toward lasting financial freedom.
Business Name – DeLuca & Associates Bankruptcy Law
Address – 4560 S. Decatur Blvd. Suite 302
Las Vegas, NV 89103
Phone – (702) 252-4673
Website – https://www.deluca-associates.com/