A Division of Addleman Law Firm

Different types of bankruptcies

Having a bankruptcy on your credit report is always going to be considered an extremely negative event in your credit history. The extent of the impact it will actually have on your credit score will depend on the entire credit profile. For example, a person that had perfect credit and an extremely high credit score should expect an enormous drop in their credit score. However, an individual who already has many negative items listed on their credit report might see merely a modest decline in their credit score. One other thing to consider is that if you have a great deal of accounts included in the bankruptcy filing, this is going to have a larger impact on your score.

While there are many factors to take into account when you are considering filing for a bankruptcy, you can expect the event to impact your score for the entire period of time that the bankruptcy is listed on your credit report. However, as time goes by, the negative influence of the bankruptcy will decrease. Below you will find the brief definition of the most common types of bankruptcy and how long these bankruptcies are expected to stay listed on your credit report.

Chapter 7: basic liquidation for both individuals and businesses. A Chapter 7 bankruptcy can stay on you credit report for up to 10 years.

Chapter 11: reorganization or rehabilitation, used primarily by business debtors, although can also be used by individuals with substantial debts and assets. A Chapter 11 bankruptcy can remain on your credit report for up to 10 years.

Chapter 13: rehabilitation with a payment plan for individuals with a regular source of income. Once completed or discharged a Chapter 13 bankruptcy can stay on your report for up to 7 years.

You should keep in mind that these timeframes refer to the public record item associated with filing for bankruptcy. All of the individual accounts included in the bankruptcy should dissolve from your credit report after 7 years.


“Shelly does an OUTSTANDING job working with the clients that I am unable to get financing for. Being a loan originator I pull a lot of credit reports and not all qualify for a mortgage loan and they have no clue what to do or how to fix it. I have given Ceritifed Credit Experts name out to many of my clients over the last few months and not only was I able to close an extra loan or 2 that otherwise I wouldn't have been able to close I was able to provide a service to my borrower's and referral sources that nobody else is providing. In times like today the extra effort doesn't go un-noticed, thank you Shelly for taking the extra effort and working great with my clients and me!” January 4, 2012

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