How long do unpaid debts remain on record after filing for bankruptcy?

 

How long do unpaid debts remain on record after filing for bankruptcy?


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Tim Cella
used to work at several law firms

This is a good question for me to answer. I’ve been involved in so many bankruptcies over the years working as a paralegal and I’ve also seen them as a real estate agent and via short sales.

So, in the United States, when you file for bankruptcy, it has an impact on your credit report and can affect the reporting of unpaid debts. The length of time that unpaid debts remain on your credit report after filing for bankruptcy can depend on the type of bankruptcy you file for and the specific credit reporting agency's policies. Here's a general guideline:

Chapter 7 Bankruptcy: In a Chapter 7 bankruptcy, which is a liquidation bankruptcy, most unsecured debts are discharged, meaning you are no longer legally obligated to pay them. These discharged debts will typically remain on your credit report for 7 to 10 years from the date of filing for bankruptcy.

Chapter 13 Bankruptcy: In a Chapter 13 bankruptcy, which is a reorganization bankruptcy, you create a repayment plan to pay off a portion of your debts over a specified period (usually 3-5 years). Debts included in the Chapter 13 plan will also typically remain on your credit report for 7 to 10 years from the date of filing.

It's important to note that while the debts themselves may remain on your credit report for a certain period, the bankruptcy filing will also appear on your credit report for a specified period (typically 7 to 10 years). This can affect your ability to obtain new credit during that time.

Additionally, the impact of a bankruptcy on your credit score can vary from person to person, and it may take some time to rebuild your credit after bankruptcy.

To get specific advice regarding your unique situation and the impact of bankruptcy on your debts, credit report, and financial future, it's essential to consult with an experienced bankruptcy attorney or a financial advisor. They can provide guidance based on your circumstances and the laws applicable in your jurisdiction.

Remember, even though bankruptcy is federal law, some things do depend on your specific jurisdiction. I hope this helps.

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