How Long Does Chapter 7 Stay on Credit Report?

Chapter 7 bankruptcy stay on credit report for 10 years from the date filed. Accounts included in the chapter 7 bankruptcy stay on credit report for 7 years from the date they were reported as included.

Credit Report Time Frame vs. Statute of Limitations
Many people confuse between the credit report time limit (10 Yrs for chapter 7 bankruptcy) and the Statute of Limitations (SOL).

Credit report time limits are governed by the Fair Credit Reporting Act (FCRA). As per the FCRA, a chapter 7 stay on credit report for 10 years, and this clock cannot be restarted.

The Statute of Limitations (SOL) is the time frame to bring a lawsuit, and has nothing to do with credit reports. It is governed by state laws, and this clock resets to zero every time you take an action with an account, no matter how much time had elapsed before the activity. You can check your state’s SOL here.

How does chapter 7 bankruptcy impact credit scores?
Chapter 7 is the worst thing that can happen to one’s credit. Luckily, as with all derogatory items, newer items impact one’s credit score more than older ones. As times passes, older item effect on credit score diminishes. In fact, up to 70% of your FICO score is determined by information (both negative and positive) from the previous two years.

Another thing to keep in mind is that FICO scores don’t solely determine one’s credit standing. Creditors DO look at your actual credit report when considering your application, so even if a bankruptcy that occurred 6 years ago has a small effect on your FICO score, it may still tip the scale against being approved.

More about credit report time limits here for more information.