How Long Does Bankruptcy Stay On Your Credit Report?

Ever Wondered How Long Does Bankruptcy Stay on Your Credit Report?

Georgia ranked among the five lowest average credit scores in the United States. With the average score just 654, compared to a national average of 700, Georgians have more than a little room for improvement in credit scores. Sometimes, debts become overwhelming and bankruptcy seems the only option, but many fear that it will irreparably damage their credit score. However, this is not entirely true. If you are wondering how long does bankruptcy stay on your credit report, we’ve got answers.

Credit Score Impact

It is true that filing for bankruptcy can lower your credit score. However, most people filing for bankruptcy are already late, or delinquent, on numerous accounts. This means that your credit score is likely already very low, so the impact of bankruptcy is relatively small. In fact, since bankruptcy brings your accounts current, it can even gradually raise your credit score. Ideally, bankruptcy also sets you up to be able to keep current with accounts once your bankruptcy proceedings are final, allowing you to maintain a good credit score.

How Long Bankruptcy Does Stay On Your Credit Report

Although bankruptcy does impact your credit score, it is not permanent. The length of time that your bankruptcy directly impacts your credit score will depend on which form of bankruptcy you and your attorney determine is best for you. This will depend on a number of factors, including the number of debts or delinquent accounts and your ability to repay them.

A chapter 13 bankruptcy comes off of your credit report after seven years, which is the shortest impact length of the bankruptcy options. However, this option requires partial repayment of debts, so it may not be the best option for everyone.

A chapter 7 bankruptcy lasts longer, at 10 years, but no repayment of debts is required. For this reason, it is the only option for some people who are unable to make any further debt payments.

Regardless of which form of bankruptcy you choose, any associated accounts will drop off of your credit report seven years from the date of delinquency. A late water bill, for example, will no longer appear on your credit report seven years after it first became delinquent, regardless of when you filed for bankruptcy.

Removing Bankruptcy and Delinquent Accounts

Once your accounts reach their expiration dates, you do not have to do anything to remove them from your credit report. This should be automatic. However, if there is a bankruptcy or delinquent account remaining after you believe the appropriate time has elapsed, you will want to investigate further by first confirming the delinquency or bankruptcy date. If the date is seven or 10 years past, depending on the form of bankruptcy filed, then you will need to file a dispute with the credit bureau. Your bankruptcy attorney can assist you by providing copies of the necessary documents to prove your dispute.

Contact a Bankruptcy Attorney Today

Do not make the decision to file bankruptcy alone. The experienced attorneys at Cornwell Law Firm can help to ensure that you make the best decision possible for your financial situation. Our attorneys will also advise you on steps to take to help ensure that your credit score rebounds quickly. Contact us today to schedule a consultation.