Can you Explain Bankruptcy?

There are two types of bankruptcy that typically appear on a credit report — Chapter 13 and Chapter 7.

Under Chapter 13 bankruptcy, you repay a portion of the debt under the terms of the bankruptcy agreement. As a result, the bankruptcy only remains on your credit report for seven years from the filing date.

Under Chapter 7 bankruptcy, you are forgiven the entire debt. Because you don't repay any of the debt, a chapter 7 bankruptcy remains on your credit report for 10 years from the filing date.

From a credit reporting standpoint bankruptcy is the most negative thing that can appear in your credit history and will have a very serious and long term impact on your credit scores and creditworthiness.

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Join our live video chat every Tuesday and Thursday at 2:30 p.m. ET on Periscope. Rod Griffin, Director of Public Education at Experian, is available to answer your questions live.

Scoped on: 08/02/2016