Bankruptcy filings in the United States hit a record high in 2010, reaching 1.53 million<\/a>. That number has since gone down significantly. In 2018, there were only about 770,000 new bankruptcy applications. <\/p>\n\n\n\n That being said, filing for bankruptcy isn’t an ideal situation to be in. It can negatively affect your financial life for a long time. This is because it has a detrimental effect on your credit score.<\/p>\n\n\n\n But the big question is: How long does a bankruptcy stay on your credit report?<\/p>\n\n\n\n It all depends on the type of bankruptcy you file for. Continue reading for a more detailed explanation. <\/p>\n\n\n\n\n\n If you’re in a situation where your income isn’t enough to settle your outstanding debts and your lenders are pursuing your assets, you can file for Chapter 13 Bankruptcy<\/a>.<\/p>\n\n\n\n If granted, asset seizure proceedings such as home foreclosure will stop immediately. You’ll have the opportunity to sit down with your lenders and draw an alternative repayment plan that suits your current financial situation.<\/p>\n\n\n\n Unfortunately, the bankruptcy will stay on your credit report for a period of up to seven years. What’s more, some of your debts that are discharged under this bankruptcy could stay on your report for longer than the bankruptcy itself.<\/p>\n\n\n\n Here’s why.<\/p>\n\n\n\n Under Chapter 13, any alternative repayment plan can only be up to a maximum of five years. So if you let a debt go into collection within the period of the new plan, it’ll stay on your report for a further seven years, regardless of whether you clear it.<\/p>\n\n\n\nChapter 13 Bankruptcy<\/h2>\n\n\n\n
Chapter 7 Bankruptcy<\/h2>\n\n\n\n