How Long Does Bankruptcy Stay On Your Credit Report

How Long Does Bankruptcy Stay On A Credit Report?

By: Michael 

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How long does bankruptcy stay on a credit report

The recent economic crisis has made it difficult to get a loan, and the effects of bankruptcy are still lingering. It did in the past and some speculate it is to come. Questions like, “What happens when you go bankrupt?” or “What will that credit report look like?” However, one question you need to know the answer to is “How long does bankruptcy stay on a credit report? Here’s your guide to what to expect after bankruptcy.

Answering the Questions

Whether you’re a financial novice or a seasoned pro, unlocking the secrets of hard inquiries is a vital step toward mastering your credit and achieving your financial goals. Let’s deep dive into the world of credit reporting together and empower you to take control of your financial future! 

Hard inquiries stay on your credit report for about two years. While they may impact your credit score, the effect diminishes over time. It’s important to note that these inquiries are visible to lenders and may influence their decisions, so it’s advisable to manage them wisely. Understanding the duration of hard inquiries is crucial for effective credit management and informed financial decisions.

Deep Dive To Know More


Bankruptcy is not good, but it’s helpful to lenders. Bankruptcy is a legal process that gives relief to a person who cannot pay his debts. Without bankruptcy, a lender will continue to try to collect the debt. If the borrower puts up collateral for the loan and doesn’t pay, the lender can take possession of the property as payment for the debt.

Trying to collect from a borrower who is behind in payments is time-consuming and costly. When a person files for bankruptcy, all of his creditors are notified, and they must agree that part or all of their claims against him will be written off. The court then issues an order called a “discharge,” which frees the person from the obligation to pay any remaining debts.

Once the discharge is granted, collection agencies will stop calling you about that person’s debt. All of his credit accounts are closed, and he will have no credit rating for 7–10 years. You won’t be able to go after him for repayment or sell his collateral.


It’s important to lenders because it shows how responsible you are with credit. If you have gone through bankruptcy, lenders will see that you have worked to get yourself out of a financial hole. They will also see that you have learned from your mistakes and that you are more likely to pay your bills on time in the future.

You might want to consider filing for bankruptcy if:

  • You’re behind in payments on your mortgage or another loan.
  • You have a large outstanding debt, such as a credit card balance.
  • The terms of the loan called for you to pay more than you could afford.
  • You incurred high medical expenses, but your health insurance company won’t pay anything.
  • Your business is losing money and you can’t make the payments.


When you file for bankruptcy, the credit reporting agencies (CRAs) will significantly alter your credit history. For example, if you’re a student with an excellent GPA who’s already in good standing, this could negatively impact your credit score. And that’s a problem because people face a lot of debt and are looking for new ways to manage their financial life.

It’s not always easy to come up with creative or innovative ways to pay off debt. It can be overwhelming to consider all the options and look at how they could affect your credit report. However, there are some things you should know about bankruptcy, so you can make informed decisions when it comes time to file for bankruptcy.

The first thing is that there are two different types of bankruptcy: Chapter 7 and Chapter 13. In general, Chapter 7 means liquidation; Chapter 13 is what most people focus on because it involves repayment plans lasting over 60 months.


When you have a bankruptcy or a financial crisis, your credit reports will change. Among other things, if you have an account that was held by someone else while you were in bankruptcy, they’ll remove it from your report. Your credit reports are important because people who use their credit cards heavily to buy homes and cars often have positive records on their credit reports. The bad news is that if you file for bankruptcy and the money runs out and your debt gets paid off, your credit scores could get negatively impacted.

If you’re in the midst of a divorce, you might also see some negative changes to your credit reports as well. Credit reporting agencies use information from more than 700 different pieces of information to determine what kind of score you’ll receive (example below). If one piece of information changes significantly — such as how much money has been garnished or how much time is remaining on a default judgment — then the entire score might change severely.


After you file for bankruptcy, you may have a negative credit report. This means that many people won’t be able to extend your credit. The good news is there are steps you can take to reverse this negative credit report and restore your ability to get a loan.

If your credit has been damaged by a legal dispute with another party, filing for bankruptcy will help protect you against being sued in the future. Borrowers with bad debt records could also face financial discrimination if they’re denied loans or other business opportunities because of their poor credit history.


Bankruptcy is a legal proceeding in which an individual or business files with a court to officially declare that they are insolvent. The typical length of time that a bankruptcy stays on your credit report varies by state, but it typically ranges from 6 months to 2 years. However, some states allow for those who were ordered into bankruptcy to have the discharge stay on the report for up to 7 years after the filing date.

Bottom Line

Bankruptcy typically remains on your credit report for 7 to 10 years, impacting your credit score. The specific duration depends on the type of bankruptcy filed. Chapter 7 bankruptcy stays for 10 years, while Chapter 13 stays for 7 years. It’s crucial to understand these timelines for effective financial planning and credit rebuilding strategies.

All In All

If you find yourself in need of a credit card, home loan, or other financial product, knowing what to expect can help you manage your finances.

Lenders are interested in knowing if you have been in bankruptcy and if you have made any payments on your credit card bills. A bankruptcy filing can cause a lot of problems for people, such as getting denied credit when applying for loans or having their credit score go down. To avoid this, there are some steps you can take to help ease the pain of a bankruptcy filing.

This should be a great answer to the question of How Long Does Bankruptcy Stay On A Credit Report? Please let me know what you think about the options people have. 

*Please note all situations are different. This is just my opinion. Bankruptcy is very serious and life changing event. It is best to discuss your options and plan of action with an attorney. 

Welcome! I’m Michael, the founder of AIA Credit Repair, and I want to help people. It wasn’t that long ago, when I realized that life’s unknowns and challenges were holding me back. When I committed to reaching my goals, fixing my credit became a crucial step. Let me teach you what I learned, so you can take the steps to fix your credit and open up more opportunities for you and your family! There’s nothing more liberating than empowering others to transform their lives. No matter the challenge, AIA Credit Repair is here, cheering you on as you excel like never before!

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