Credit reports should be updated by the creditors and credit reporting agencies after a bankruptcy filing or discharge to reflect that debts have been discharged. Under the Fair Credit Reporting Act. creditors and credit reporting agencies are required to report accurate and complete information.
How Long on My Credit Report ?
In general, the filing of a bankruptcy case may be reported on a credit report for up to 10 years from the date the case is filed. The websites of Experian and TransUnion state that they only report completed or discharged chapter 13 bankruptcy on credit reports for only 7 years. Credit reporting agencies should remove the reference to bankruptcy automatically after such 7 to 10 year period.
Individual accounts included in a bankruptcy case can remain on a credit report for the usual seven year period from its original delinquency date or other adverse information. Experian.com states that the filing of the bankruptcy case should not change the original delinquency date or extend the time the account remains on the credit report.
Although the bankruptcy filing may remain on your credit report for 7 to 10 years, some sources, including myfico.com, suggest that the impact of bankruptcy on your credit score will diminish over time and even before it is deleted from your credit report.
How is Discharged Debt Reported ?
Accounts included in the bankruptcy should accurately indicate that they were discharged in the bankruptcy case. The most accurate report would be “0 balance”, “included in bankruptcy”, or “discharged in bankruptcy”. Most suggest that notations such as “past due” or “charged off” should be deleted.
Correcting Your Credit Report
If your credit report does not accurately report the bankruptcy discharge information, you can request that this information be updated. You can obtain a free copy of your credit report once every 12 months at www.annualcreditreport.com.
The Federal Trade Commission’s website provide helpful educational publications about credit reports. The Bankruptcy Court of the Western District of Washington also provides useful information about “Bankruptcy & Your Credit Report.”