There’s a lot of confusion concerning exactly how long a bankruptcy filing can legally stay on a person’s credit report.
Ask that question and you’re sure to get quite a few different answers. Some will say ten years. Others will say ten years for a Chapter 7 and seven years for a Chapter 13.
The law is actually very clear on this particular issue. The Fair Credit Reporting Act (“FCRA”) directs credit reporting agencies to remove bankruptcy case information from all consumer reports ten years after the date of entry of the “order for relief.” See 15 USC 1681c(a)(1).
The FCRA doesn’t distinguish between Chapter 7 and Chapter 13. However, many credit counselors cite an “unofficial policy” of the three largest credit reporting bureaus (Equifax, Experian, and TransUnion) to remove chapter 13 filing information from your credit report after seven years.
There’s also confusion over when the FCRA’s ten year time period begins. Some say the information must be removed ten years after the date of the discharge. However, the United States Bankruptcy Code states that the order for relief date is the date the bankruptcy petition was filed, so the ten year period must is measured from the bankruptcy filing date, not the discharge date. See 11 USC 301.
Therefore, information about your bankruptcy must be removed from your credit report no later than ten years after the date you filed bankruptcy. For example, if you filed bankruptcy on January 1, 2010, the bankruptcy must be removed from your credit report no later than December 31, 2019.
{ 4 comments… read them below or add one }
Do I still have to wait 10 years if i filed bankruptcy before the 2005 law. I filed on nov.16, 2001!
Julie,
The new bankruptcy law that took effect in 2005 did nothing to change how long a credit bureau can report a bankruptcy filing on a debtor’s credit report which is regulated by the Fair Credit Reporting Act.
Dan Nunley
I filed Chapter 7 on Oct 15 2005 and it was discharged on May 4th 2006. In June of 2011 I lost a case with a medical company which now has me in judgment for 70k. I have been paying them back 100 dollars at week, at this rate will take me about 13 years to pay back. Can i file Chapter 7 to clear my self of this debt? Or do i have to wait? If I have to wait how long? If I file is my husband protected?
Keisha,
Eight years must elapse between the filing dates of the two Chapter 7 cases in order for you to be eligible for another discharge. Therefore, you will not be eligible for another Chapter 7 discharge until October 15, 2013. However, you are eligible for a Chapter 13 discharge right now so you may want to talk with a knowledgeable and experienced bankruptcy attorney near you about filing Chapter 13 bankruptcy and whether that would be in your best interest or not. I wish you well.
Dan Nunley