How Long Will Bankruptcy Effect Your Credit
The Bankruptcy itself and the debts associated with the bankruptcy will be displayed differently on your credit report. A completed Chapter 13 bankruptcy will stay on your report for up to seven years, and discharged debts will also stay on the report up to seven years after they are discharged. Since many debts will remain active in a Chapter 13 bankruptcy until the end of a three to five year payment plan, the debts that were discharged could actually remain on the report longer than the bankruptcy itself.
A completed Chapter 7 bankruptcy will stay on your credit report for up to ten years. Moreover, because all debts associated with a Chapter 7 bankruptcy are discharged within a few months of filing, they should drop off the report a few years before the bankruptcy itself. In general, discharged debt drops off a credit report after 7 years.
Basically, as the items on your report associated with the bankruptcy get older, they will have less and less of an effect on your credit score. This, by the way, may speak to the timeliness of filing for bankruptcy as opposed to letting collections accounts linger and then filing later.