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Ask Dr. Don
By
Don
Taylor,
Ph.D.,
CFA
•
Bankrate.com |
Credit reports and bankruptcy
Dear Dr. Don,
How long does a bankruptcy filing stay on someone's
credit report and does that person need to contact any service or
company to get it removed from a credit report once a set number of
years has passed?
Lisa Ledger
Dear Lisa,
A Chapter 7 bankruptcy filing stays on your credit report for 10
years while a Chapter 13 bankruptcy is typically listed for seven
years. The shorter time span for the Chapter 13 bankruptcy is a
reflection of the debtor working with the bankruptcy court to structure
a repayment plan to pay back all or part of her debts.
Consumer reporting agencies aren't required to remove
a Chapter 13 bankruptcy after seven years. The Fair Credit Reporting
Act allows a credit bureau to report even a Chapter 13 bankruptcy
for 10 years. Experian removes a Chapter 13 bankruptcy filing seven
years after discharge, as do TransUnion and Equifax.
Negative information should drop off your credit report
automatically after the seven to 10-year time period has passed.
If it doesn't, and you'll have to check your credit reports to know
whether it did, you can use the dispute provisions under the Fair
Credit Reporting Act to prompt the consumer reporting agencies to
update your credit history. For help with that, see this Bankrate.com
guide.
-- Posted: Feb. 19, 2004
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