How Soon Will My Credit Score Improve After Bankruptcy? – Scottsdale

Ten years is the time a bankruptcy can stay on your credit record even following the discharge and debt repayment. However the length of time it remains depends on the kind of bankruptcy you file. read on to learn more.

Chapter 7 bankruptcy can remain on your credit report for up to ten years, meanwhile Chapter 13 can remain on there for seven years. However the impact of the bankruptcy does lessen over time and there are things you can do to help minimize the damage.

Chapter 7 Bankruptcy

When you file Chapter 7, you will most likely have to wait the full ten years before it comes off your credit report. Discharged debts will be listed as such, though they will fall from your credit report after seven years from the filing date, unless they were already delinquent, in which case, it may be sooner.

Chapter 13 Bankruptcy

A finalized Chapter 13 bankruptcy and the accounts will drop off your credit report seven years after you filed, unless they were already delinquent, in which case, it may be sooner. Chapter 13 is often looked more favorably upon because there is usually a payment of at least some of the debt.

Once the bankruptcy has been removed from your credit report, your scores should begin to upturn, even more so when you pay your bills on time and in full and utilize credit in a responsible way. Filing for bankruptcy is not an easy path though it may be right for some. If you can commit to using credit in a responsible manner following your bankruptcy, you can rebuild it while awaiting the bankruptcy debts to fall away from the credit report.