A bankruptcy is a major, long-lasting entry, but the way it reports still has to be accurate. Here is what to know.
Chapter 7 vs. Chapter 13
A Chapter 7 bankruptcy can report for up to 10 years from the filing date; a Chapter 13 generally reports for up to 7. Accounts included in the bankruptcy should show as discharged, not still owing.
How it affects your credit
Bankruptcy has a large impact early on that lessens over time. As it ages and you add positive history, its weight on your score gradually decreases.
Common reporting errors
Watch for accounts discharged in bankruptcy that still show a balance, a wrong filing or discharge date, or a bankruptcy that is not yours. Those are inaccuracies you can dispute.
A correctly reported bankruptcy will remain for its full reporting period. What can be disputed are errors, like wrong dates, accounts that should show discharged, or a record that is not yours.
If accounts discharged in your bankruptcy still show a balance, or a date is wrong, we help clients identify and dispute those errors.
An accurate item that has to stay does not mean your credit can't improve. Your score is built from several parts — payment history, balances, the age of your accounts, and your credit mix — so there are still legitimate ways to move it forward, such as adding a positive tradeline, lowering your balances, and building new on-time history. This is exactly where a credit coach can help.
See how credit scores work →These guides are general educational information, not legal or financial advice. Individual results are unique and vary. You have the right to dispute inaccurate information on your own credit report at no cost.