How Long Does Bankruptcy Stay on Your Credit Report?


One of the most common questions surrounding bankruptcy is, “How long does bankruptcy stay on your credit report?” The amount of time you’ll wait depends on the type of bankruptcy you file. If you file Chapter 7, for example, it’ll remain on your credit report and appear on credit checks for 10 years from the filing date. If you file Chapter 13, on the other hand, it’ll remain your credit report for seven years from the date you file.

Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy

If you’re an individual who’s considering bankruptcy, you can file Chapter 7 or Chapter 13. There are other options for businesses. What’s the difference between Chapter 7 vs. Chapter 13? Here’s a quick comparison:

  • Chapter 7: If you don’t have the funds to repay your debts, this is the option you’ll take. Some of your assets will likely be sold to cover your debts, but you won’t have to worry about coming up with the cash.
  • Chapter 13: This is the best path for those with a steady income who can repay a fraction of their debts over time. The repayment plan usually lasts three to five years.

Is Filing Bankruptcy Worth It?

If you’ve labored with repaying your debts for years, bankruptcy can be a viable option for resolving the problem. However, it’s important to understand the impact it’ll have on your credit. Those with higher credit scores tend to see a steeper decline. For example, if your credit score is 780, it may drop 220 to 240 points. If you have a lower score, you may find it easier to improve it again after the initial drop.

Another important factor to keep in mind is your priorities. If you’re struggling to repay a large amount of debt and can’t stay above water, maintaining your credit score or applying for a loan isn’t as pressing as a possible foreclosure, wage garnishment, or lawsuit. In some cases, bankruptcy can help your credit by relieving debts, even if it does stay on your credit report for seven to 10 years.

How to Avoid Bankruptcy

Of course, the best way to protect your credit from bankruptcy is to avoid it altogether. This may not be possible in all cases, but for others, there are solutions and steps that can be taken to relieve debt and keep credit intact. Here are a few suggestions:

  • Make payments on time and pay your way out of debt
  • Sell some of your assets and valuables
  • Ask creditors to work with you and let them know you’re considering bankruptcy
  • Talk to a credit counselor
  • Consider a personal loan with a workable interest rate

Get More Information from Xpress Cash!

Now that you know the answer to the question, “When does a bankruptcy clear from a credit report,” contact us at Xpress Cash to learn more about your debt relief options. We serve customers from our locations in Idaho, Wisconsin, and Michigan. Discovered an inaccurate mention of filing for bankruptcy on your credit report? Check out our guide for disputing errors.