Bankruptcy on Your Credit Report

How long bankruptcy can be reported

FCRA § 605 allows a bankruptcy case to be reported for up to 10 years from the date of the order for relief. The credit bureaus generally remove completed Chapter 13 cases after 7 years as a matter of policy. The individual accounts included in the bankruptcy follow their own 7-year periods based on their original delinquencies.

How discharged accounts should look

After a discharge, accounts that were discharged should be reported as “included in bankruptcy” or “discharged in bankruptcy” with a $0 balance and no past-due amount. They should not show new late payments after the filing date.

The discharge injunction

Once debts are discharged, the Bankruptcy Code (11 U.S.C. § 524) forbids creditors from trying to collect them as a personal obligation. Reporting a discharged debt as still owed can be used as a collection tactic — which courts have found may violate the injunction.

The most common post-bankruptcy errors

• Discharged accounts still showing a balance or past-due amount
• Accounts missing the “included in bankruptcy” notation
• Late payments reported after the filing date
• Collectors reporting debts that were sold after they were discharged
• Accounts you reaffirmed reported incorrectly
• A dismissed case reported as discharged, or the reverse

Rebuilding after bankruptcy

Pull all three reports about 60 days after your discharge and compare every account with your bankruptcy schedules and discharge order. Dispute anything inaccurate. Then begin rebuilding — a secured card or small credit-builder loan, paid on time every month, is a strong start.

Sources: Fair Credit Reporting Act, 15 U.S.C. §§ 1681c(a)(1), 1681e(b), 1681i, 1681s-2; Bankruptcy Code, 11 U.S.C. § 524.