Earlier three types of public records were reported on the credit report of any individual, however, now just one – bankruptcy is reported in the credit history. Bankruptcy is generally the last resort for people who have tried in vain to get rid of their debts. Lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, elaborate that different bankruptcy chapters can have different repercussions on your credit history.
- In Chapter 7, the filer does not pay any debts; any non-exempt property they have is sold off to pay their creditors. This type of bankruptcy remains on the credit report for a period of 10 years.
- Chapter 13 requires you to repay some portion of your debts through the repayment plan over 3-5 years’ time. This bankruptcy stays on your credit report for 7 years from the filing
As court records are updated on a regular basis, any information related to bankruptcy also gets automatically updated on the credit report. The information is generally provided either directly from courts or through the credit reporting companies. In case you observe any discrepancy in the information, you could dispute the same by submitting proof via mail, phone or online to any of the credit rating bureaus. Once the information is verified, it is rectified and updated on your credit report. You can ask experienced bankruptcy lawyers to help you with problems related to a bankruptcy filing or discharge by calling 888-297-6023.