A bankruptcy filing is one of the most significant blemishes that can appear on your credit report. The others are repossessions and mortgage foreclosures.
Credit reports and credit scores are used not only by mortgage and vehicle lenders. They are used by employers, insurance companies, apartment managers, and government agencies.
Pursuant to the Fair Credit Reporting Act bankruptcies must be deleted from credit reports after 10 years. In fact, TransUnion and Experian remove Chapter 7 bankruptcies after 10 years, and Chapter 13 bankruptcies after 7 years. Until recently Chapter 13 Cases that were dismissed by the court were kept on the credit report for 10 years by Equifax. Now, however, Equifax removes all Chapter 13 Cases, regardless of the outcome, after 7 years
Accounts in collection are removed from credit reports 7 years after the original delinquency.
While a bankruptcy is certainly considered a negative credit event, many bankruptcy clients report that they are in fact able to re-establish credit. One example is car loans, where many vehicle lenders are willing to lend to bankrupts after the Chapter 7 Discharge, as most pre-bankruptcy debt has been cancelled in the Chapter 7 Discharge.
The Law Offices Of Todd S. Frankenthal handles bankruptcies and credit reporting cases in Martin County, Broward County, Palm Beach County, and Miami-Dade County Florida.