The reporting periods can be summarized as follows:
Chapter 7 Bankruptcy (discharged granted) – 10 years from filing.
Chapter 7 Bankruptcy (dismissed, no discharge) – 10 years from dismissal.
Chapter 13 Bankruptcy (discharged granted) – 7 years from filing.
Chapter 13 Bankruptcy (case dismissed, no discharge) – 7 years from dismissal.
The Details: The Fair Credit Reporting Act (“FCRA”) limits how long certain items are reported on your credit report. Pursuant to the FCRA, a credit reporting agencies will report and keep on their records a bankruptcy filing for a period of ten (10) years from the bankruptcy filing date. 15 USC. Sec. 1681c(a)(1). Although the FCRA allows the reporting of all bankruptcies for 10 years, most credit report agencies only report chapter 13′ s for a period of 7 years from the filing. If your case is dismissed, without the granting of a discharged, it will be reported from the date the case is dismissed rather than from the filing date. 15 USC Sec. 1681c(d)(1). If you apply for credit or insurance of more than $150,000.00, or for a job with an annual income of $75,000.00 or more, credit reporting agencies may report bankruptcies, lawsuits, paid off tax liens, accounts sent for collection, criminal records, past due child support, or any other adverse information beyond the normal time limits. 15 USC Sec. 1681c(b)(1) – (3). In practice, however, credit reporting agencies often delete all items after 7 to 10 years.
As odd as it may sound, bankruptcy may actually help you start building good credit better than just continuing to struggle to pay more debt than you can comfortably handle. This is so because bankruptcy will help you meet two of the most important components of a good credit score, namely making your payments on time (35% of your credit score) and not utilizing most of your available credit (30% of your credit score).
The client only section of our website provides practical detailed advise on how to reestablish your credit after bankruptcy. Call today for more information – (919) 875-8773.
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