Bankruptcy and Your Credit: How Long It Really Lasts

Bankruptcy stays on your credit reports for up to 10 years: a Chapter 7 for 10 years from the day you file, and a Chapter 13 for seven, according to Experian. Your score takes a big drop when you file. But the damage fades long before the bankruptcy comes off, especially once you have a year or two of on-time payments after it.

It also wipes out the debts that were pulling your score down, which is part of why people recover. Below: how long each piece stays on your reports, what happens to your score and your cards, when you can get a card, a car loan or a mortgage again, and how to rebuild.

How long does bankruptcy stay on your credit report?

Chapter 7: 10 years from the filing date.
Chapter 13: seven years from the filing date.
The accounts in the bankruptcy: these run on their own clock. Each account's late payments and charge-off come off seven years after you first fell behind on it, which is often sooner than the bankruptcy itself.

The clock starts when you file, not when the case ends. That matters most for Chapter 13. If your plan runs five years, the bankruptcy comes off your reports about two years after your last plan payment.

An accurate bankruptcy can't be removed early, by you or by anyone you pay. Experian says the only ways it comes off sooner are errors, such as a wrong filing date, or a case a creditor wrongly filed against you.

What does bankruptcy do to your credit score?

It drops, often a lot. According to myFICO, someone with a score in the mid-700s might see it fall by 100 points or more. How far yours falls depends on the rest of your report. If you were already behind on several accounts, your score may have taken most of the damage before you filed.

Then it starts to recover. The bankruptcy counts for less each year, and every on-time payment after it helps. Nobody can honestly tell you how many points you'll get back, or how fast.

Two things work in your favor afterward:

The discharged debts show a $0 balance. Card balances that were pushing your credit utilization up stop counting against you.
Nothing new goes late. Accounts in the bankruptcy shouldn't report missed payments after you file. If one does, you can dispute it.

What happens to your accounts and credit cards?

Debts in the bankruptcy: after the discharge, each one should show on your reports as discharged, with a $0 balance. Its earlier history, late payments included, stays until its own seven years are up.
Credit cards: cards you owe money on are part of the case, and those accounts get closed. A card you owed nothing on isn't a debt, but its issuer may still close it or cut the limit once it sees the bankruptcy.
You can't pick which debts to include. You have to list everything you owe, and a debt you leave off isn't discharged. So bankruptcy for credit cards only isn't an option, even if the cards are your only problem.
Some debts survive. Most student loans, child support and alimony, certain taxes, and court fines usually aren't wiped out.
Collectors have to stop. The discharge is a permanent court order that bars creditors from trying to collect a discharged debt. If one keeps trying, tell your attorney or the court.

What happens between filing and discharge?

Before you file: a credit counseling session from an approved agency, within 180 days before you file.
Filing: collection calls, lawsuits and wage garnishments stop under what's called the automatic stay. The court fees come to $338 for Chapter 7 and $313 for Chapter 13, and courts can let you pay them in installments.
The meeting of creditors (often called the 341 meeting): 21 to 40 days after filing for Chapter 7, or 21 to 50 days for Chapter 13. You answer the trustee's questions under oath, and creditors can come and ask questions too.
A course on managing money: you have to finish it before the discharge, or you can lose the discharge.
The discharge: for Chapter 7, usually 60 to 90 days after the date set for the creditors' meeting. For Chapter 13, after you've made all the plan's payments, over three or five years.

During a Chapter 13 plan you're still under the court's eye. U.S. Courts says you can't take on new debt without consulting the trustee, because new payments could sink the plan.

One Chapter 7, start to finish

Say you fall behind on two credit cards in August 2026 and file for Chapter 7 on February 1, 2027. Here's how the dates play out:

Late February to mid-March 2027: the creditors' meeting, 21 to 40 days after you file.
Around May 2027: the discharge, 60 to 90 days after the date set for that meeting. Both cards should show as discharged, with $0 balances, within a few months.
May 2029: two years after the discharge, an FHA mortgage becomes possible.
May 2031: four years after the discharge, a conventional mortgage that Fannie Mae buys becomes possible.
August 2033: the cards' late payments and charge-offs come off your reports, seven years after you first fell behind.
February 2037: the bankruptcy itself comes off, 10 years after you filed.

File a five-year Chapter 13 the same day instead, and the dates change. Your plan payments run into early 2032, and the bankruptcy comes off your reports in February 2034. You can apply for an FHA loan after 12 months of on-time plan payments, with the court's written permission. A Fannie Mae loan has to wait until two years after the discharge.

When can you get credit again?

Credit cards usually come first. A secured card, where your deposit sets the limit, is the safest place to start. Our page on the best secured credit cards compares deposits and fees.
Watch the card offers that arrive after a discharge. Read the fee table before you apply. Some cards aimed at people rebuilding charge an annual fee, a monthly fee and a setup fee, all on a small limit.
Credit builder loans: a credit union or community bank holds a small loan, usually no more than $1,000, while you pay it off, and reports your payments to the bureaus. Experian lists these and secured cards as the two main ways to rebuild.
Car loans are possible, but expect a higher rate for a while. A bigger down payment and a shorter loan keep the cost down.
Mortgages follow the waiting periods above, which start from the discharge date. Lenders also look at how you've handled credit since, so the years in between count.

How to rebuild your credit after bankruptcy

Check all three credit reports a month or two after the discharge. Every account in the case should say discharged, with a $0 balance, and none should show a late payment after you filed. Dispute anything wrong with the bureau showing it. Our guide to your credit report shows where to look.
Open one or two accounts that report to all three bureaus: a secured card, a credit builder loan, or both.
Pay every bill on time. Autopay for at least the minimum takes care of it.
Keep card balances low: under 30% of each limit, and lower is better. On a $300 secured card, that means under $90.
Don't pay anyone to remove the bankruptcy. An accurate one stays for its full term, and the CFPB says credit repair companies typically charge for things you can do yourself for free.
Track your progress. The 30-Day Credit Plan puts the steps in order, and the Credit Score Estimator gives you a rough range without a credit check.

Chapter 7 or Chapter 13: which is easier on your credit?

Chapter 7 stays on your reports longer, 10 years, but it's over in a few months, so you can start rebuilding sooner.
Chapter 13 comes off sooner, seven years from filing, but keeps you in a court-supervised plan for three to five years, and you need the trustee's OK for new debt while it runs.

You don't always get to choose. Your income decides a lot: above your state's median, Chapter 7 gets harder to qualify for, and a Chapter 13 plan generally runs five years. Most people decide with a bankruptcy attorney, based on what they need to protect, like a house or a car, more than on what it does to their credit. Our comparison of debt settlement vs. bankruptcy explains both chapters in more detail.

Before you file: the other options

Bankruptcy is sometimes the right call, and there's no shame in it. It also stays on your record for years, so it's worth ruling out the alternatives first:

A debt management plan through a nonprofit counselor repays everything at lower rates, usually over three to five years, and doesn't need good credit.
Debt settlement may cut what you owe, before fees and only if your creditors agree. It damages your credit too, and forgiven debt can be taxed.
A consolidation loan only helps if you can afford the payment and get a lower rate than you pay now.

Our Debt Options Check asks a few questions about your debts and income and shows which of these fits, with no phone number and no credit check.

If you're being sued or your wages are being garnished, talk to a bankruptcy attorney soon. Many offer a free first consultation, and legal aid may help if your income is low.

Sources

How to Recover From Bankruptcy, Experian
How to Remove Bankruptcy From Your Credit Report, Experian
Considering bankruptcy, myFICO
Chapter 7: Bankruptcy Basics, U.S. Courts
Chapter 13: Bankruptcy Basics, U.S. Courts
Discharge in Bankruptcy, U.S. Courts
Bankruptcy Court Miscellaneous Fee Schedule, U.S. Courts (the $78 administrative fee, from Dec 1, 2023; the filing fees are on the Chapter 7 and 13 pages)
How does a bankruptcy affect a borrower's eligibility for an FHA mortgage?, HUD
B3-5.3-07, Significant Derogatory Credit Events: Waiting Periods, Fannie Mae Selling Guide
What is the difference between credit counseling and debt settlement, debt consolidation, or credit repair?, CFPB
The worked example is our own, with made-up dates.

Bankruptcy and Your Credit: What Really Happens