bankruptcy and your credit report

Why you should check your credit report after filing bankruptcy.  

When you file for bankruptcy, the bankruptcy shows up on your credit report as a public record.  Filing bankruptcy also affects the individual credit accounts or tradelines in your credit report.  

Public Record Reporting
If you file chapter 7 bankruptcy, the bankruptcy can remain on your credit report for 10 years from the date of filing bankruptcy.  If you file chapter 13 bankruptcy, the bankruptcy can remain on your credit report for 7 years from the date of filing bankruptcy.
 
But how should your individual accounts be reported on your credit report after filing bankruptcy?
 
Chapter 7 Bankruptcy Discharge
After filing chapter 7 bankruptcy, your credit report should list zero balances for discharged debt, and include language to the effect of “discharged in bankruptcy” or “included in bankruptcy.”  Your credit report should not list any discharged debt with a balance, or report the account as open or charged-off following your bankruptcy.
 
Chapter 13 Bankruptcy
 
After filing chapter 13 bankruptcy, your credit report should accounts should list the balances for each account you are required to pay through the chapter 13 plan while your bankruptcy is pending.
 
Since a chapter 13 plan can take 3-5 years to complete, your accounts should include language to the effect of  “involved in chapter 13 wage earner plan” or “making payments in wage earner plan” while your bankruptcy is pending.  Your credit report should not list these accounts as open or charged-off while your bankruptcy is pending.
 
After receiving a chapter 13 bankruptcy discharge, your credit report should include language to the effect of “discharged in bankruptcy” or “included in bankruptcy” for the accounts that were discharged in bankruptcy.  Your credit report should not list any discharged debt with a balance, or report the account as open or charged-off following your bankruptcy.
 
Our Michigan bankruptcy lawyers and credit lawyers can help answer your questions.
If you have any errors on your credit report, or have questions about filing bankruptcy and the effect on your credit, contact one of our Michigan credit lawyers at (313) 415-5559.  We have offices in Southfield, Michigan and our Michigan bankruptcy attorneys can also help you file bankruptcy.