Find out how long bankruptcies stay on your credit report and how they affect your credit score.
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Chapter 1: How Long Do Bankruptcies Stay on Your Credit Report?
There are many different types of bankruptcies, but they all have one thing in common: they stay on your credit report for a long time. Depending on the type of bankruptcy, it can stay on your report for up to 10 years. That’s a long time to have a black mark on your credit history.
The most common type of bankruptcy is Chapter 7 bankruptcy, which is also known as liquidation bankruptcy. This type of bankruptcy allows you to discharge most of your debts, but it also has a major impact on your credit score. Chapter 7 bankruptcies can stay on your credit report for up to 10 years.
Chapter 13 bankruptcies are less common, but they can still have a significant impact on your credit score. With this type of bankruptcy, you create a repayment plan to repay some or all of your debts over a three- to five-year period. Chapter 13 bankruptcies can stay on your credit report for up to seven years.
Other types of bankruptcies, such as Chapter 11 and Chapter 12, are less common and usually involve businesses rather than individuals. These bankruptcies can also have a major impact on your credit score and can stay on your credit report for up to 10 years.
No matter what type of bankruptcy you have, it’s important to understand that it will stay on your credit report for a long time. If you’re considering filing for bankruptcy, you should speak with an attorney or financial advisor to discuss all of your options and the potential impact on your credit score.