How Long Does Chapter 7 Stay On Credit Report
How long does chapter 7 stay on credit report?
Before we know how long does chapter 7 stay on credit report it is necessary for those who are not very well versed with the codes of bankruptcy to know about it. Chapter 7 is a one of the six different types of bankruptcy codes under the federal jurisdiction of the US. According to which when a company is all out of business and has stopped all the ventures and has filed for bankruptcy, the assets of the company is sold off or ‘Liquidated’ by an appointed trustee and the debt is cleared off by this money. This whole process is known as chapter 7. The widespread bankruptcy causes are redundancy; medical expenses; and other huge unanticipated operating expenses.
However it is to be noted that liquidating is different from ‘Repayment’. In earlier cases there was an option between chapter 7 and 13 for the people filing for bankruptcy. Although in the present scenario if the income is high they have no choice but to file under chapter 13.Concerning how long does chapter 7 stay on credit report, The one who wants to file chapter 7 has to confirm that they fall below the minimum amount of income given. In case of chapter 7 the debtor’s assets are sold and the money is used to pay off the creditors. The one who can file chapter 7 must be a resident or must have a place of business or a property in US; the one filing chapter 7 must not have been discharged of chapter 7 in the last six years; must have finished the debt counseling sessions in 6 months latest. These are the factors that affect how long does chapter 7 stay on credit report.
It is to be remembered about how long does chapter 7 stay on credit report, that all the credit reports that deal with bankruptcy are deleted according to the date of filing. The date of report clearance however does not get affected anyhow by the deletion of accounts involved in the bankruptcy and bankruptcy reports. In normal circumstances a chapter 7 bankruptcy takes up to ten years from the date of filing to be deleted off the credit reports because of the fact that there remains no debt that is to be repaid.
Considering how long does chapter 7 stay on credit report, it is important to know that bankruptcy affects the possibility of getting the credit on the basis of one’s ability to pay. However, getting a credit check is also based on the amount of present income that you possess right now rather than the negative markings on the credit report. So having a good wallet gets you past your bad credit reports in a sense that even after having a bankruptcy on the reports one can get credit as soon as one is released off chapter 7, usually four months after the filing and further a year a later the amount of credit that can be taken will keep on increasing for as long does chapter 7 stay on credit report.