Most people researching bankruptcy have read that a bankruptcy will stay on your credit report for 10 years from the day you file. It’s true that a Chapter 7 bankruptcy will stay on your credit report for 10 years, but that’s not the case for a Chapter 13 bankruptcy.
Chapter 13 bankruptcy requires to repay a certain amount of your debt for a period of three to five years. Since you repay some of your debt, Chapter 13 will only stay on your credit report for 7 years from the day you file.
This is important information for people who assume that Chapter 13 will stay on their credit report longer than a Chapter 7 since the repayment period can be so long.
How long a bankruptcy will be reported on your credit report is only one factor to think about when considering bankruptcy. You should also know that an employer cannot fire you for filing, but in Colorado it hasn’t been decided whether or not an employer can make a hiring decision based on your bankruptcy filing. If you’re concerned about them finding out, the best course is to tell them before they run your credit report.
You should also know that if you are married and decide to file bankruptcy without your spouse, your filing will not have any impact on your spouse’s credit report. Your spouse will not be included on your bankruptcy petition. The only issue related to filing without your spouse is that we have to take into consideration his or her income when determining whether or not you’re eligible for a Chapter 7 bankruptcy or how much you would have to repay your creditors in a Chapter 13 bankruptcy.
Bankruptcy is just one option you have if you’re struggling with your finances. If you have questions, we hope you’ll come in for a free, no-obligation consultation with an attorney. You can schedule an appointment by calling 303.331.3403 or by using our online scheduling system.