How long does a Chapter 13 stay on credit report?

[Doolsey]

I know a Chapter 7 is ten years. But on a 13, sometimes I hear ten years, sometimes I hear seven. Maybe some people count from day of filing and some from date of discharge? Is that it?

I read another post that said it varies from CRA to CRA.

I also read something once that said it had to do with what percentage of the total debt you pay off in the BK plan.

Thanks.

[ghacorp]

Chapter 13 remains on credit report for at least seven years from the date of discharge. Up to twenty years in court files.

[crofttk]

FCRA 605 stipulates a public record of BK can stay ten years without distinguishing between chapters 7 and 13: http://www.ftc.gov/os/statutes/fcra.htm#605

However, I have read that some, if not all, CRAs will delete at the 7 year mark.

[LadynRed]

BAnkruptcies are reported from the date of FILING, not discharge date.

§ 605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c]

(a) Information excluded from consumer reports. Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:

(1) 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.

So, while neither can stay more than 10 years, Ch 13's generally do drop off at 7.

[Doolsey]

There is a serious discrepancy out there about this!

What you both said was correct. I read the FCRA myself and you are right. It makes no distinction!

But look here:

"What's the hit on my credit?
The bankruptcy will appear on your credit report for 7 years after you file. This means you will only have 4 years left with this on your credit report-- a big advantage over a Chapter 7. Other accurate negative reports on your credit must be removed after seven (7) years (like late payments on credit cards, foreclosures, etc.). Your credit will most definitely be less damaged than had you completed a Chapter 7."

I pasted this off this very site!

Someone please provide me with some explanation for the differing info. I really, really need to know because I am Chapter 13 eight and a half years ago!

Chapter 13: IS IT SEVEN OR IS IT TEN?

PLEASE.

(P.S. I work for a passive-aggressive boss who daily tortures me. He is a serial bully. See bullyonline.org and look for the description of serial bully. It is like they know him.

right here:

http://www.bullyonline.org/workbully/serial.htm

I was admitted to Mensa at age 14. I am capable of making more than just an average salary. I have $100k of home equity that I can't get at. I could start my own insurance agency if I could just get a cash-out refi. My wife got sick in '94. She couldn't work and all those medical bills. Long gone, but not according to the CRA's.)

[crofttk]

Are you still active in Mensa ? I had five kids and let my membership lapse because Bill Cosby told me my IQ would go down once I had kids ! :lol:

The LAW, per FCRA: Is 10 years.

Some, if not all 3, CRAs delete after 7 for a BK13.

So, why the discrepancy ? I'm not sure. Purely from a moral/ethical standpoint, one could reason your credit should suffer less lenghty a hit because at least you paid something back in BK13. Of course, there are those who will reason from a legal AND ethical standpoint that BKs of any sort shouldn't show AT ALL on your CR because it circumvents Congress' intent that those who file achieve a clean slate / fresh start !

If you're a conspiracy theorist, you can reason that the OC's and CRA's collude to have it that way to penalize, relatively, those who have their debts completely "forgiven" with BK7.

Now, what I would recommend for you, at 8.5 yrs. out is to first try the poor ignoramus approach and call in to the CRAs and explain to the CSR that, "Hey, this BK13 shown here is dated 2/95, aren't these normally deleted after 7 years ?". If at first you don't succeed, hang up and call back and give a different CSR a shot. The tactic of course, is to feel out the CRAs practice and politely prompt them to delete rather than demand it per FCRA.

Good Luck ! (whatever you decide to try)

[crofttk]

Actually, there's a parallel thread on this over at CB: http://www.creditboards.com/phpBB2/viewtopic.php?t=9603

Turns out that you can actually find verbiage on thr CRAs practice at their own sites ! EQ is the one out of 3 that says they'll keep it on there for 10 years, TU and EX say 7 years.

[smogtek]

Unless I'm wrong I believe, as a matter of policy, EX and TU only carry dismissed 13's for 7 years while EQ, for whatever reason, chooses to keep dismissed 13's on for 10 years. It says so on the explanation that comes with your EQ report.

I know because I filed a 13 in Sep 94, decided not to go through with it and it was dismissed Nov 94 according to my CR. THe court, however, shows it dismissed in May 95. GO FIGURE.

I'm currently in dispute, but it will drop off in 6-12 months anyway so I'm not sweating it

[crofttk]

OK, rather than you having to follow the link I provided, here's the text quoted from each of the 3 CRA's websites, dealing with discharged AND dismissed BK13's:
-----------------------------------------------------------------------------------
From Trans Unions' site:

How long do public records remain on my credit report?
In general, civil judgments remain on your credit report for seven years from the date filed. Tax liens remain on file for seven years from the date paid. If the tax lien is not paid, it will remain on the file indefinitely. Chapter 13 bankruptcies that have been dismissed or discharged remain on file for seven years. All other bankruptcies remain on file for ten years.

http://www.transunion.com/content/page.jsp?id=/personalsolutions/general/data/ManagingCreditFAQ.xml#5



From Experian:

Bankruptcy
One of the great myths about bankruptcy is that it erases bad credit history. It doesn't.

Declaring bankruptcy frees you from paying all or part of the debt you owe. The status of accounts included in the bankruptcy will be updated to reflect that fact, but the accounts will not be deleted from your credit report.

Chapter 13 bankruptcy remains on your credit history for seven years. Chapters 7 and 11 are reported for 10 years. Credit accounts may be deleted at different times depending on their status prior to being included in bankruptcy.

http://www.experian.com/ask_max/bankruptcy.html

Equifax is the one that will keep a dismissed bk 13 for 10 years:

Chapters 7, 11 and non-discharged or dismissed chapters 12 & 13 remain on file for 10 years from the date filed. Non-Discharged
Discharged chapters 12 & 13 remain on file for 7 years from the date filed. Discharged

https://www.econsumer.equifax.com/consumer/forward.ehtml?forward=fyi#howlong
-----------------------------------------------------------------------------

So, I reckon that lines up w/ smogtek in that ALL 3 remove a BK13 after 7 years with the exception that EQ will keep a BK13 that was dismissed or never discharged on for 10 years.

Again, it looks like CRAs opt to reward those who do partial payback in BK13s by removing them generally 3 years before FCRA 605(a)(1) says they have to.

BTW, it does say in FCRA (perhaps 605, or the FCRA FTC Commentary) that the 10 years is a maximum and there's no prohibition against CRAs/OCs removing information early.

[kb9tbq]

You know what, enough people should start filing complaints with the FTC about Equifax policy not to extend reporting on dismissed and non-discharged.

I have never seen a bankruptcy non-discharged, dose a court have a given date when you are expected to discharge the debt, then update your records with this status date showing you failed to discharge. In that case I thought the bankruptcy would have been what they call resindered? And the big questions is, if a source for a CRA will know this when they see it to make note on updating the credit report. These I would imagine are rare...

This is messed up like tax liens. You may have it on forever, but if you pay it, then you have it another 7 years from the date you paid.

[crofttk]

...about Equifax policy not to extend reporting on dismissed and non-discharged...Well, in a case of EQ's policy, as long as it doesn't exceed the 10 years allowed, without reference to chapter or status, in FCRA 605(a)(1), the FTC would have no say in it.

However, I agree that many other problems, including the other ones you mentioned may be addressed sooner if we ALL took a more agressive stance in filing complaints with the FTC.

[smogtek]

Well, I should be "in the zone" for deletion come March '04. It really doesn't matter since we got our home, but it will be nice to see if it does anything to pump up my current EQ FICO of 675.

Next week is ALREADY Labor Day. Halloween candy is being sold here in So Cal, so Christmas and the New Year should be here in short order. LOL!

Matt