Bankruptcy

• Bankruptcy is a federal court matter and is included in public records. Anyone can access this information. Credit reporting agencies, tenant screening services and background report companies regularly search bankruptcy records and include bankruptcy information in their reports. Unless the public records are inaccurate, you won't be able to remove the bankruptcy from your report, though you can add a statement to your reports explaining its circumstances.
  
  

Time Frame

• When you file for bankruptcy, you are admitting that you've lost control over your finances. Furthermore, your creditors, particularly your unsecured creditors (such as credit card companies) may get little or nothing of what you owe them. Because of this, your bankruptcy will show up on your credit report for a significant amount of time after you file. The federal Fair Credit Reporting Act (FCRA) allows bankruptcies to appear on your report for 10 years, though some credit reporting agencies voluntarily remove a Chapter 13 repayment plan after seven years. (See References 1 and 3)
  
  

Affected Accounts

• Any accounts affected by your bankruptcy will still remain on your credit report until they drop off, which usually happens after seven years. However, your creditors are obligated to accurately report your debt balances after, and during, your bankruptcy. Discharged debts should list a balance of "zero". If you are in Chapter 13 repayment, your balances should decrease as you pay them. If a creditor does not accurately report your balance, the FCRA gives you the right to dispute the information with the credit bureaus.
  
  

Bankruptcy Reported in Error

• In some cases, a bankruptcy filed by someone who shares your name may end up on your credit report as well as other types of consumer reports, such as employment and tenant background screening reports. If this happens, invoke your rights under the FCRA and request that the credit bureaus reporting this erroneous information remove it from your credit reports. To spot credit report mistakes, check the reports regularly. The FCRA gives you the right to request one free copy of your credit and consumer reports each year from each of the credit and consumer reporting bureaus that produce these reports.