When you file for bankruptcy, it is important to remember that any and all accounts that are included in the bankruptcy will find a mention on your credit report. Lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, inform that these accounts will not be deleted from your credit history immediately after a bankruptcy discharge, but remain on the credit report for a period of seven years. This seven-year duration is from the original delinquency date or the date of the bankruptcy filing. Individuals can file for bankruptcy under Chapter 7 or Chapter 13. The difference in credit reports in either cases is mentioned below:
- Chapter 7
When you file for bankruptcy, you are expected to mention all creditors and thus all accounts are listed in your credit report as “included in bankruptcy.” Once you get your bankruptcy discharge, which in the case of Chapter 7 takes 3-6 months, the account status gets updated to “discharged in bankruptcy.” Since debts in this chapter are discharged without any repayment, the bankruptcy remains on credit report for 10 years, however, the accounts included in bankruptcy are removed after seven years.
- Chapter 13
This chapter of bankruptcy involves repayment through a court-approved plan, on completion of which the bankruptcy is discharged after 3-5 years. Since some portion of the debts is paid in this case, the bankruptcy remains on your credit report for seven years. All accounts listed in Chapter 13 bankruptcy are shown as “included in bankruptcy” with their status changing to “discharged in bankruptcy” on completion of the repayment plan.
In case any account included in bankruptcy fails to get listed in your credit report, you should approach a credit reporting company and provide Schedule A document from your bankruptcy filing so that the information is updated on your credit report. Having an experienced lawyer can make a huge difference to your bankruptcy case. In case you are looking for one, call 888-297-6023 to schedule an appointment.