Just because bankruptcy has a big impact on the credit report, it’s crucial to know how long does a bankruptcy stay on your credit report.
In general, bankruptcy stays on the credit report for 10 years. Some agencies agree to remove it in 7 years. The demands, in such cases, might be very strict.
Information about bankruptcy has a negative effect on the potential loan approval. Many borrowers with bankruptcies in their reports have problems with issuing a mortgage, car loans, and credit cards. Affordable interest rates are also less possible for them.
Therefore, more and more borrowers are looking for the way to remove bankruptcy earlier. Still, even with bankruptcies, some lenders will agree to finance you.
How long does chapter 7 bankruptcy stay on your credit report?
The answer is the same. Chapter 7 bankruptcy is removed from the credit report in 10 years. Chapter 13 bankruptcy is removed in 7 years. It depends on the portion of the debt that is paid off. In the case of chapter 7 bankruptcy, the debt isn’t paid off at all.
For more information, you should look on the website of every credit report bureau.
P.S.: Read about bankruptcy and debt consolidation.