A bankruptcy can stay on your credit report for 7 to 10 years from the filing date. Bankruptcy is the worst thing that can happen to your credit, wreaking havoc on your credit standing and leaving behind significant damage from which you’ll be lucky to recover in less than a decade. This is the longest penalty for any credit-related transgression.
The exact timeframe that a bankruptcy will stay on your credit report ultimately depends on the chapter you file, as the following table demonstrates.
When Bankruptcies Are Removed From Credit Reports
| Bankruptcy Chapter | Bankruptcy Record Removed After |
| Chapter 7 | 10 Years |
| Chapter 11 | 10 Years |
| Chapter 12 | 7 Years |
| Chapter 13 | 7 Years |
Note that these timeframes are from when you file for bankruptcy. Also, keep in mind that the specific accounts included in your bankruptcy filing will come off your report seven years after the date of first delinquency, which should benefit your credit standing despite the record of bankruptcy itself remaining. If an account that is part of your bankruptcy was not delinquent at the time of your filing, it will be removed at the same time as your bankruptcy record.
Types of Bankruptcies
Chapter 7
This is also known as liquidation bankruptcy and involves forfeiting some of your assets to a trustee, who will then sell the property and use the proceeds to pay off your debt. A Chapter 7 bankruptcy typically takes just a few months to resolve but can stay on your credit report for 10 years.
Chapter 11
This type of filing is mainly used for businesses and is commonly referred to as reorganization. With a Chapter 11 bankruptcy filing, companies reorganize their debts so they can stay in business. Individuals who exceed the maximum limit for Chapter 13 can also file for Chapter 11. A Chapter 11 bankruptcy filing stays on your credit report for 10 years.
Chapter 12
Chapter 12 bankruptcy is specifically designed for financially distressed family farmers and fishermen with regular annual income. This filing allows them to make installment payments to creditors over the course of three to five years. This type of bankruptcy filing stays on a credit report for seven years.
Chapter 13
This type of filing is also known as a wage earner’s plan, and it’s for individuals earning regular income. It allows them to keep their assets and take part in a repayment plan to pay back their debts over the course of three to five years. A Chapter 13 filing stays on your credit report for seven years.
How Long Does Bankruptcy Affect Your Credit?
Even though a bankruptcy is listed on your credit report for seven to 10 years, its effect on your credit score will lessen over time. For instance, it’s not uncommon for people to begin receiving credit card offers as soon as one year after going through bankruptcy.
You should make sure you don’t allow your newfound financial leeway to derail your rebuilding efforts by overextending yourself all over again, which, unfortunately, happens all too often. In 2024, for instance, 34% of the nearly 200,000 Chapter 13 bankruptcy filers had filed a prior bankruptcy case in the previous eight years.
Bankruptcy takes credit scores to the bottom of the credit rating scale, and there’s not much you can do to prevent that before your case is discharged. But the recovery process should begin shortly thereafter.
How to Rebuild Credit After Bankruptcy
Get a Secured Credit Card
The best, least expensive way to begin the rebuilding process is to place a deposit on a secured credit card, use it to make small everyday purchases, and then pay your bill on time and in full every month. After all, some secured credit cards, such as the opensky® Plus Secured Visa® Credit Card, for example, don’t even require a credit check.
Try a Credit-Builder Loan
Credit-builder loans are specifically designed for people trying to either build or rebuild their credit. With these types of loans, you’ll make monthly on-time payments, and the lender will report these payments to the credit bureaus, which will add positive information to your credit report to lessen the negative impact of the bankruptcy. You generally cannot access the funds until the loan is fully repaid.
Become an Authorized User
If you become an authorized user on a family member’s credit card account, you can benefit from their credit standing, assuming they have good credit or better. Your family member’s positive account information, such as on-time payments and a low credit utilization ratio, will be listed on your credit report, helping you boost your credit.
Seek Free Counsel
From WalletHub guides and other online resources to initial consultations with bankruptcy attorneys and nonprofit credit counselors, you have many free tools at your disposal that you can use to more confidently navigate the bankruptcy process and its aftermath.
For instance, WalletHub provides guides that walk you through the process of filing Chapter 7 and Chapter 13 bankruptcy. You can also get tips on how to rebuild your credit and how to manage your money better in general. WalletHub offers tools that can help you make a budget, compare the best credit cards for rebuilding your credit after bankruptcy, etc.
Sign Up for Credit Monitoring
Moving forward, it’s best to stay abreast of your credit report’s every move. But no one has time to do that on their own, especially while working to rebuild after bankruptcy. That’s where a free 24/7 credit monitoring service like WalletHub’s comes in handy, providing peace of mind in the form of an early warning system for any important change to your file.
Learn more about rebuilding your credit.
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