Bankruptcies can stay on your credit report for some time, but you are not stuck with a bankruptcy affecting your credit score forever. Instead the bankruptcy will eventually drop off from the reported items on your credit report. If your bankruptcy is old enough, you can request that the credit reporting agency remove it before it falls off on its own.
Type of Bankruptcy
The two main types of consumer bankruptcy, Chapter 7 and Chapter 13, have different reporting times on your credit report, so know which type you went through. If you are uncertain, a Chapter 7 bankruptcy discharges all of your debt and you do not have to pay it back to the creditors, while a Chapter 13 sets up a payment plan so you can fulfill all or a portion of your debt obligations included in bankruptcy.
Included in Bankruptcy
All debts you included in bankruptcy have a comment in the notes that either says "included in bankruptcy" or "IIB." You do not have any obligation to pay these debts, but they remain on your credit report as negative accounts until seven years past the discharge date.
Reporting Time Line
Chapter 7 bankruptcy stays in the public records section of your credit report for 10 years before it ages off. The waiting time begins 30 to 60 days after the bankruptcy. Chapter 13 bankruptcy, on the other hand, reports for only seven years, starting after the bankruptcy is discharged, which is after you finish your payment plan.
Removal
After a bankruptcy has reached the seven- or 10-year mark, check your credit report for a few months. The bankruptcy should drop off on its own. If it does not, send a letter to each credit reporting agency indicating that the bankruptcy is past the time that it should be reported and request a removal. You may also do this by disputing the bankruptcy through the credit reporting agencies' websites.
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