Bankruptcy – How long could a bankruptcy stay on my credit?
Your Credit Minute Show Notes:
- 00:00 Guys, Nik Tsoukales with Key Credit Repair. Your credit question of the day. Pretty simple stuff. Um, I’m- I’m asked this constantly right now, especially with kind of a looming future, uh, recession probably at hand, uh, and- and that question is going to be, how long could a bankruptcy stay on my credit report? Okay, and this is a question we get a lot of times pre-filing.
- 00:20 People are scared to do a bankruptcy even though they need it because they’re worried it’s going to destroy their credit for the next unforeseeable future, maybe even a decade, but it doesn’t. Okay. Let’s give you some logistics here, some specifics. Chapter 13. It’s going to appear on your credit report for seven years before it drops off automatically based on the statutes and limitations. That’s an automatic drop off after seven years from the date it was discharged.
- 00:43 Now, keep in mind, a Chapter 13 typically has a three year repayment window. Sometimes longer, sometimes shorter. A Chapter 13, you’re repaying the debts through a trustee, really through the court. They’re just managing the whole thing for you. Very similar to a debt consolidation, but the court’s, uh, administrating the whole thing, um, and it allows you some protection against the creditors while you get back on your feet.
- 01:06 Now, Chapter seven is a different circumstance. Okay. Um, again, we have 10 years for Chapter seven, but with a Chapter seven, when that bankruptcy is filed, it’s typically discharged right away within 30 days and all of your debt is wiped out. Okay. So, that your statutes and limitations on that is 10 years from the discharge date. So, it’s a little further up, but it makes sense because if you’re in a 36 month repayment plan, okay, with a Chapter 13 and you add the seven years, it’s about 10. Okay. So, they- they really each match up.
- 01:41 Um, I would say if you do have the option of one or the other, Chapter seven is always your best bet. You’re not repaying back anything. Everything is getting wiped out and you’re getting a cleaner slate much, much quicker. Okay, but for those of you that are maybe self-employed, you have a lot of things to preserve, you have assets that you need to maintain like the business, some real estate, Chapter 13 is a wonderful alternative and it’s going- it’s going to save those assets where Chapter seven really you’re- you’re forgoing everything, okay, with the exception of some things you can protect- protect like, uh, the owner occupied home that you’re in the state that you’re in.
- 02:18 So, guys, credit question of the day. Again, just a quick recap. How long will a bankruptcy stay and appear on my credit report? You have seven years from the discharge date on the Chapter 13 and you have 10 years on the discharge date for your Chapter seven. Any additional questions regarding your credit you’d love for me to answer, guys email me. Nik … N-I-K … @keycreditrepair.com. I’ll shoot you an email back. Whatever the question is, regardless of how hard you think it might be and how complicated you think it might be, I’ll get a video right back out to you. We’ll post it on YouTube. Keep in mind, if you’re thinking about it, someone else is thinking about it too, and, uh, i think we’ll allow you to help your fellow citizens here. Thanks guys. Have a great day.