When you have just filed for bankruptcy, it’s important to know how long it will stay on your credit report. Having a bankruptcy on your credit history will hurt your chances of getting a loan and may even prevent you from taking out new lines of credit. This means it’s in your best interest to take the necessary steps to remove your bankruptcy and improve your credit score.
Depending on the type of bankruptcy you file, the length of time the bankruptcy is on your credit report will vary. If you filed for Chapter 13, the timeline is different from a chapter 7. There are also limits on how long bankruptcy can be on your credit report. While there is no magic number, if you are looking to remove your bankruptcy sooner, you’ll have to make some phone calls and a bit of elbow grease.
One of the biggest factors in your credit score is your payment history. If you are able to pay your bills on time, you will be rewarded by a better credit rating. But, if you don’t manage your debts, you can expect to pay for it with a lower credit score. Even if you do get a loan, you can expect to be turned down because of your nonpayment history.
If you are interested in the longest period of time a bankruptcy will be on your credit report, you can count on it being on your report for seven or 10 years. The Fair Credit Reporting Act dictates how long a consumer’s bankruptcy will be on their report. Getting a free copy of your credit report every 12 months will help you keep track of your credit history.
If you’ve been thinking about filing for bankruptcy, it’s a good idea to start building your emergency fund. It should cover three to six months of your expenses. Make sure your monthly budget includes enough for you to be able to pay for unforeseen emergencies. Your first few months of bankruptcy will likely be the hardest, but with patience and a little extra money you can build up your bank account.
Depending on the types of accounts you had before filing for bankruptcy, your credit report will show a bankruptcy for as long as a decade. However, there are some exceptions. Individual bankruptcy accounts will be deleted automatically after seven years, while a public record of a bankruptcy will be removed after ten years.
The best way to figure out how long a bankruptcy will stay on your credit report is to request a free copy of your report from each of the three major credit bureaus. These reports will give you a free credit report every twelve months, so you’ll have the opportunity to review your report and determine what steps you should take to improve your credit.
You may have heard of the dispute process, but that can only be used for incorrect information. If you find something you believe is inaccurate, you can contact one of the bureaus, who will investigate the matter and respond within 30 days.