How Long Does A Chapter 7 Bankruptcy Stay On Your Credit Report (And Why)?

How Long Does A Chapter 7 Bankruptcy Stay On Your Credit Report (And Why)?

Exact Answer: 10 years

The chapter 7 bankruptcy can stay for around 10 years on your credit report. They would get discharged in 180 days depending on the filing date. People would see both chapters 13 and 7 on their credit reports. After the person’s assets are liquidated, there is a chance that the person may go through bankruptcy.

Bankruptcy would happen when the person won’t be able to pay the money due to the liquidation of the majority of assets. Once the case of bankruptcy is filed against the name of a person, the person won’t be required to pay the payments to the lender. Here, the payments are those which are included in the filing.

How long does a chapter 7 bankruptcy stay on your credit report

How Long Does A Chapter 7 Bankruptcy Stay On Your Credit Report?

Chapter 7 BankruptcyTime
In years10 years
In months120 months

The chapter 7 bankruptcy would stay for around 10 years on your credit report. This can create a negative impression on the lender about the person. The lender would update the account status of the person who is under the condition of bankruptcy as “included in bankruptcy”.

After the person is discharged from bankruptcy, then the lender will update the account of the person as “discharged”. The delinquent account may have to stay under the “included in bankruptcy” condition for around 7 years. Bankruptcy would totally disturb the credit report and history of the person.

Bankruptcy would not only create a bad impression but may prevent many lenders to give money to the person. Rebuilding the credit after a bankruptcy is extremely tough. Debt consolidation is helpful for people who are not able to pay their debt payments.

People who are finding difficulties in paying their debt payments can also take the help of credit counseling. If the person has an adequate amount of credit to qualify or get the payment with very low interest, then the person can take the help of consolidation.

Everyone can consolidate all the balances from different accounts to get low-interest payments. Everyone can do the consolidation to reduce the monthly payment, and would also help you prevent bankruptcy.

Why Does A Chapter 7 Bankruptcy Stay For This Long On Your Credit Report?

If a person is charged with chapter 7 bankruptcy, then the person should sell off all the assets to the lenders or creditors. Once the person is under liquidation bankruptcy, then the person is not allowed for reorganization or negotiation.

The bankruptcy court would deal with everything to continue the process of chapter 7 bankruptcy on someone. A trustee would be appointed by the bankruptcy court. The creditor should be paid off in the correct manner, and the same should be confirmed by the trustee.

The value of secured debt is always more than unsecured debt. The person who has taken a secured loan must pay off the payments at the earliest to the creditors. Small businesses, individuals, or corporations can qualify for chapter 7 bankruptcy according to the laws and regulations.

If the person’s assets are sold off to the lender or creditor by the trustee, then the person may be forgiven for the remaining amount of money. After 10 years when the bankruptcy is removed from the credit report, the person can try to rebuild the credit at the earliest.

Everyone can avoid any late payments or taking loans that can’t be paid on time. People need to do regular payments to improve their credit scores. The bankruptcy charges may go after a decade, but the negative impression may stay for the whole life. Therefore, it’s better to avoid the bankruptcy situation.


The chapter 7 bankruptcy can stay for 10 years on the credit report. The credit score of the person would be highly affected if the person goes through the bankruptcy stage. After bankruptcy, the person may take several years to rebuild the credit score. Everyone should try to open a new account after bankruptcy.

As it’s good to start everything without any bankruptcy history on the credit report. Keeping a track of credit reports and history is vital. Everyone should try to do all the payments on time to avoid any issues of late payments or bankruptcy.


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