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How Long Does a Bankruptcy Stay on Your Record?

Many people are concerned that filing for bankruptcy will have a long-lasting impact on their credit report, but the specific length of time that a bankruptcy will remain on your report depends heavily upon the type of bankruptcy you filed. While your credit score will be negatively affected by bankruptcy — and likely drop a few hundred points — it’s essential to be aware that you can take steps to start working toward rebuilding your credit right away.

Here’s how the different types of bankruptcy filings can affect your credit score:

  • Chapter 7 — This type of bankruptcy is typically filed by individuals looking for a fresh start and seeking to have their debts discharged. While a Chapter 7 bankruptcy proceeding usually takes anywhere from three to six months, it will remain on your credit report for 10 years, beginning on the date you filed for relief.
  • Chapter 13 — If you don’t qualify for Chapter 7, you may be eligible for Chapter 13 bankruptcy. Usually referred to as “wage earner’s bankruptcy,” Chapter 13 gives debtors the opportunity to enter into a payment plan to repay their debts, rather than discharge them entirely. This type of bankruptcy filing will remain on your credit report for seven years from the date you commenced the case.
  • Chapter 11 — Although Chapter 11 is usually used by businesses to restructure their debts, individuals may also file for Chapter 11 in some cases. This type of bankruptcy filing can remain on your credit score for up to 10 years.

You may see a dramatic drop in your credit score shortly after filing for bankruptcy. However, there are several ways you can start repairing your credit. Although you may not be able to qualify for a credit card, obtaining a secured credit line and making payments on time and in full is one of the best strategies to begin increasing your credit score. If possible, having someone co-sign for a vehicle loan or credit card can also be a good way to make improvements to your credit score.

It’s also essential to monitor your spending habits and create a budget to develop good financial habits moving forward.

Located in Atlanta, The bankruptcy firm of Rountree Leitman & Klein LLC provides high quality legal services and skilled counsel to clients throughout Georgia concerning bankruptcy matters. Call 404-737-9623 or contact us online to schedule a free consultation.

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    Will and his team did a great job for me. I was skeptical in the beginning due to past experiences I had with attorneys, but on the most part, I would say he and his team were on top of things, and got the job done and I'm in a much better ...
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