Why accounts in bankruptcy continue to be part of your credit report

Dear Experian,

Why are the accounts that are under a bankruptcy listed individually? Doesn’t the bankruptcy cover that?



Dear ELZ,

When you declare bankruptcy, the bankruptcy public record will be added to your credit report. At the same time, the history of the accounts included in the bankruptcy will continue to be reported. The status of each account included in the bankruptcy will be updated to indicate that it is part of the bankruptcy.

The reason each account should be updated individually is because not every account is always included in a person’s bankruptcy. It is possible to retain an active account that should continue to be updated. Also, any closed accounts not included will continue to be a part of your history until they are purged, typically after 10 years if there is no delinquency. Those accounts can be positive factors as you begin to rebuild your credit.

If the accounts included in bankruptcy were delinquent at the time of filing, they will be deleted seven years from the original delinquency date. The original delinquency date occurred before the bankruptcy, so the accounts will be deleted before the bankruptcy public record.

Bankruptcy public records remain for seven years if you declare Chapter 13 bankruptcy and for 10 years if you declare Chapter 7 bankruptcy. Under Chapter 13 bankruptcy you must repay at least a portion of the debt, so it remains for a shorter time.

Thanks for asking.

- The “Ask Experian” team

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