Bankruptcy and Credit: How Long Does Chapter 13 Stay on a Credit Report?

Bankruptcy & Credit: Confusion
Bankruptcy and Credit create more confused advice than any other area of bankruptcy law.  Many people believe that so long as a bankruptcy is being reported on their credit report they will have no hope of buying a house or car.  It’s not true.
Plenty of Conflicting Advice about Bankruptcy and Credit Reports
Many of my clients have told me that they know bankruptcy stays on credit reports for 7 years. Not necessarily true.  Google the phrase: How long does Chapter 13 stay on my credit report.  You might be surprised by how many different answers you get.  Most of the articles will say 7 years.  Not always true.  Others will say 7 years from the date of discharge.  Also not true.  A few will say 10 years.  That is sometimes true, but often wrong.
What are the rules about how long Chapter 13 Stays on your Credit Report
Some of the different answers about how long Chapter 13 stays on a credit report are caused by the questions. There is a difference between how long it can be reported and how long it is usually reported.
Fair Credit Reporting Act controls how long it can be reported
The Fair Credit Reporting Act is a Federal law that controls what credit bureau’s can report.  It does not have much to say about bankruptcy.  In fact, the word bankruptcy only appears one time in the entire Act. What it says is:
Cases under title 11 [United States Code] or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.
That makes it clear that it is legal to report any bankruptcy for 10 years from the date that the bankruptcy is filed. But, this law does not require that a credit bureau report the Chapter 13 for 10 years.  It just means that they cannot legally report the Chapter 13 bankruptcy filing for any longer than 10 years.
The Credit Bureau decides how long the Chapter 13 is reported on the credit report
There are 3 major credit bureaus used by the financial industry. Each of them have their own policies on how long they will report a Chapter 13 bankruptcy on your credit report.  For example Experian says they will report the Chapter 13 bankruptcy filing for 7 years on your credit report. However, Equifax says they will report a dismissed Chapter 13 for ten years.
Bankruptcy and Credit: What Does it all mean?
It is very easy to get advice about bankruptcy and credit. It is not so easy to evaluate the trustworthiness of that advice. When it comes time to seriously consider filing bankruptcy in Arizona you need someone who knows the system and knows the answers in detail. Trucly Pham Swartz and Joe Volin are experienced Phoenix Bankruptcy Lawyers and can provide you with the help you need. For a free bankruptcy appointment call us at 480-820-0800.
 
Original article: Bankruptcy and Credit: How Long Does Chapter 13 Stay on a Credit Report?©2013 Arizona Bankruptcy Lawyer. All Rights Reserved.The post Bankruptcy and Credit: How Long Does Chapter 13 Stay on a Credit Report? appeared first on Arizona Bankruptcy Lawyer.