How to Rebuild Credit After Bankruptcy
How long a Chapter 7 or Chapter 13 stays on your report, what discharged accounts should look like, how to fix the ones that are wrong, and the mortgage waiting periods FHA, VA and Fannie Mae actually publish.
A bankruptcy discharge wipes out most of the debts in the case, but it does not wipe your credit report. Three things are true at once after a discharge: the bankruptcy itself is listed as a public record, each account that was in the case keeps its own history, and you can start adding new positive history right away. This page covers each piece using the statute, the bureaus’ own explanations, the bankruptcy courts and the mortgage agencies’ rulebooks. Everything was checked on October 22, 2026, and every source is listed at the bottom.
How long each chapter stays
The Fair Credit Reporting Act sets the outer limit. Section 1681c(a)(1) says a credit report may not include bankruptcy cases that are more than 10 years old, counted from the date of the order for relief (for a voluntary case, that is the filing date). The law does not set a shorter period for Chapter 13. The shorter Chapter 13 period is bureau practice: Experian says a Chapter 7 is deleted 10 years after filing and a Chapter 13 seven years after filing, both counted from the month you filed, not from the discharge.
| Item | How long it stays | Clock starts | Rule comes from |
|---|---|---|---|
| Chapter 7 public record | 10 years | Filing date | FCRA limit; Experian practice matches it |
| Chapter 13 public record | 7 years | Filing date | Bureau practice (the FCRA would allow 10) |
| Account that was late before the filing | 7 years | Original delinquency date | FCRA 7-year rule; Experian practice |
| Account that was current when you filed | 7 years | Filing date | Experian practice |
Sources: 15 U.S.C. § 1681c(a); Experian, “When Does Bankruptcy Fall Off My Credit Report?” and “Can Accounts Included in Bankruptcy Be Deleted?” Checked October 22, 2026. Experian says the discharge date has no effect on when bankruptcy information is deleted.
Two details from the statute matter in practice. First, the time limits do not apply to reports pulled for a credit transaction of $150,000 or more, life insurance of $150,000 or more, or a job paying $75,000 a year or more (§ 1681c(b)). A large mortgage application can legally see an older bankruptcy. Second, if you withdrew a case before a final judgment, the bureau must show it as withdrawn once it receives documentation of the withdrawal (§ 1681c(d)(2)).
Worked example. You file Chapter 7 on March 3, 2026. The federal courts say a Chapter 7 discharge typically comes about four months after filing, so roughly early July 2026. A card you first fell behind on in September 2025 should drop off around September 2032 (seven years from the original delinquency). The bankruptcy public record should drop off around March 2036. Use the removal date calculator to work out your own dates.
What discharged accounts should show
Experian describes the normal sequence. When you file, each account listed in the case is updated to show “account included in bankruptcy.” When the discharge is entered, the status changes to “discharged in bankruptcy.” In Chapter 7 that change usually comes within a few months. In Chapter 13 the accounts keep the “included in bankruptcy” status until the plan is completed, which can take three to five years.
A discharged debt is no longer owed. The discharge is a court order: under 11 U.S.C. § 524(a) it operates as an injunction against any action to collect a discharged debt as your personal liability. So an account that was discharged should not be reported as if you still owe it. Check every account in the case for these problems:
- A balance above $0 on an account that was discharged.
- A status of “open,” “past due” or “charged off” with no bankruptcy notation.
- New late payments reported after the filing date on an account that was in the case.
- A collection account for a discharged debt that a debt buyer started reporting after your discharge.
- A wrong original delinquency date, which would push the removal date later.
Not every debt is discharged. The federal courts list exceptions that include spousal and child support, certain taxes, government fines and penalties, and debts for willful and malicious injury. Those can still report as owed. And any debt you reaffirmed stays yours: a reaffirmation agreement must be made before the discharge and filed with the court, and you can cancel it until the later of the discharge or 60 days after it is filed (§ 524(c)). After that it reports like any other open loan.
How to dispute bad reporting
- Get your papers. Your discharge order and the schedules (the list of creditors) from your case are your proof. Your bankruptcy attorney or the court’s records system has them.
- Pull all three reports. The FTC says you can get a free report from each bureau every week at AnnualCreditReport.com. See the free credit report guide.
- Match each account to your schedules. Mark any listed account that shows a balance, a non-bankruptcy status or post-filing lates.
- Dispute with each bureau that shows the error, and attach the discharge order and the page of the schedule listing that creditor. Under § 1681i the bureau has 30 days to finish its investigation (up to 15 more if you send new relevant information during that time) and must send you the results within 5 business days of finishing. Step-by-step instructions are in how to dispute your credit report.
- If a creditor tries to collect a discharged debt, the federal courts say you can file a motion with the bankruptcy court reporting it, and the court will often reopen the case to enforce the discharge. Creditors who violate it can be sanctioned. Talk to your bankruptcy attorney before you do this.
If a dispute does not fix the entry, § 1681i(b) lets you add a short statement of dispute to your file. The bureau can limit it to 100 words.
A month-by-month rebuilding plan
Accurate negative items cannot be removed early, so rebuilding means adding positive history alongside them. The schedule below is a plan of actions, not a promise of score gains. No primary source publishes typical point changes after bankruptcy, and how fast scores move depends on your whole file. For general timelines see how long rebuilding takes.
| When | What to do | Why |
|---|---|---|
| Month 0–1 after discharge | Pull all three reports; dispute any discharged account with a balance or wrong status | Errors on discharged accounts can look like debt you still owe |
| Month 1–2 | Open one starter account: a secured card, a credit-builder loan or a share-secured loan | A new on-time account is what starts the positive history |
| Month 2–6 | Put one small recurring bill on the card and pay the statement in full; set up autopay for at least the minimum | Payment history is the biggest scoring factor, and one late payment would be a new negative |
| Month 6–12 | Add a second account type if you started with only one; keep reported card balances low (utilization guide) | A card plus an installment loan gives the scoring models both kinds of account |
| Month 12–24 | Check whether your secured card can graduate; avoid applying for several accounts at once | Graduation keeps the account’s age and returns your deposit |
| Month 24 and on | Line up your mortgage timing using the waiting periods below | FHA and VA waits after a Chapter 7 discharge are two years |
A plan of actions, not a forecast. For a version built around your own starting point, use the free credit roadmap.
Mortgage waiting periods
Each loan program sets its own minimum wait, measured from the discharge (or dismissal) date, not the filing date. These are program minimums; individual lenders can require more.
| Program | After Chapter 7 | Chapter 13 |
|---|---|---|
| FHA (HUD Handbook 4000.1) | 2 years from discharge, counted to case number assignment; 12 to 24 months possible with documented extenuating circumstances | Possible during the plan once 12 months of payouts have elapsed, with on-time payments for the latest 12 months and written permission from the bankruptcy court |
| VA | 2 years; 1 year possible with documented re-established credit | One year of payments as agreed plus permission from the trustee; credit is treated as re-established once the plan is completed |
| Fannie Mae conventional (Selling Guide B3-5.3-07) | 4 years from discharge or dismissal; 2 years with extenuating circumstances | 2 years from discharge, or 4 years from dismissal (2 years with extenuating circumstances) |
| Fannie Mae, more than one bankruptcy in 7 years | 5 years from the most recent discharge or dismissal; 3 years with extenuating circumstances | |
Sources: HUD Handbook 4000.1, manual underwriting bankruptcy section, last revised November 26, 2025; VA Loan Guaranty 2023 lender conference, “Credit Underwriting” presentation; Fannie Mae Selling Guide B3-5.3-07, dated August 7, 2019. All checked October 22, 2026. HUD also requires the lender to document that the events behind the bankruptcy are not likely to recur.
Using the Chapter 7 example above (discharge in early July 2026): FHA and VA could be possible from about July 2028, and a Fannie Mae conventional loan from about July 2030. In a five-year Chapter 13 filed in January 2026, an FHA loan could be possible from about January 2027 with court permission, long before the discharge.
Offers to avoid
A fresh discharge is a common target for sales pitches. Federal law gives you specific protections:
- “Credit repair” that charges first. The Credit Repair Organizations Act bars a credit repair company from charging you before the promised service is fully performed (15 U.S.C. § 1679b(b)). The FTC adds that these companies must give you a written contract and a three-day right to cancel without charge.
- Promises to remove an accurate bankruptcy. Experian says there is no way to remove an accurate bankruptcy record early. The FTC lists promises to hide a bankruptcy as a scam sign.
- A “new credit identity.” The FTC says companies offering a new credit identity may have you apply for an Employer Identification Number from the IRS under false pretenses to build a separate credit file. The FTC lists this as a scam.
- Collectors on discharged debts. A discharged debt is not owed. Do not pay it to make a caller go away; see debt collection rights and talk to your bankruptcy attorney.
- Back-to-back bankruptcy. If you are pushed toward borrowing you cannot repay, know that the federal courts say a new Chapter 7 discharge is denied if you received a Chapter 7 or 11 discharge in a case filed within the prior eight years, and § 1328(f) bars a Chapter 13 discharge within four years of a prior Chapter 7, 11 or 12 filing.
FAQ
How long does Chapter 7 stay on my credit report?
Ten years from the filing date. That is the limit in the Fair Credit Reporting Act, and Experian says it deletes a Chapter 7 at 10 years from the month you filed, not from the discharge.
Why does Chapter 13 come off sooner than Chapter 7?
It is bureau practice, not a separate legal rule. The law allows any bankruptcy case to be reported for up to 10 years, but Experian says it removes a Chapter 13 seven years after the filing date.
Should a discharged account show a balance?
A discharged debt is no longer owed, so it should not be reported as an amount you still owe. Experian says accounts in a case are updated to show discharged in bankruptcy once the discharge is entered. If one still shows a balance or a past-due status, dispute it with the bureau and attach your discharge order.
When can I get a mortgage after Chapter 7?
FHA requires two years from the discharge date to the date the case number is assigned, with 12 months possible in documented extenuating circumstances. VA generally uses two years. Fannie Mae requires four years from discharge, or two with extenuating circumstances. Lenders can set stricter rules.
Can I get an FHA loan while I am still in Chapter 13?
Yes, per HUD Handbook 4000.1, once at least 12 months of the payout period have elapsed, all payments in the latest 12 months were on time, and the bankruptcy court has given written permission to take on the mortgage.
Can a company remove my bankruptcy for a fee?
Not if it is accurate. Experian says an accurate bankruptcy cannot be removed early, and the FTC treats promises to hide a bankruptcy as a scam sign. Federal law also bars credit repair companies from charging you before their services are complete.
Sources
Only primary sources. Every figure above comes from one of these pages, checked October 22, 2026.
- 15 U.S.C. § 1681c, Requirements relating to information contained in consumer reports — law.cornell.edu/uscode/text/15/1681c. 10-year bankruptcy limit, 7-year limit for other adverse items, $150,000 / $75,000 exceptions, chapter and withdrawal disclosure.
- 15 U.S.C. § 1681i, Procedure in case of disputed accuracy — law.cornell.edu/uscode/text/15/1681i. 30-day investigation, 15-day extension, 5-business-day results notice, 100-word statement.
- Experian, “When Does Bankruptcy Fall Off My Credit Report?” February 26, 2024 — experian.com. Chapter 7 and 13 periods from the filing month; accurate bankruptcies cannot be removed early.
- Experian, “Can Accounts Included in Bankruptcy Be Deleted?” June 6, 2018 — experian.com. Account-level removal dates and the “included” / “discharged in bankruptcy” statuses. Experian notes archived posts may not reflect current policy.
- United States Courts, “Discharge in Bankruptcy – Bankruptcy Basics” — uscourts.gov. Discharge timing, non-dischargeable debts, enforcing the discharge, eight-year rule.
- 11 U.S.C. § 524 (effect of discharge; reaffirmation) — law.cornell.edu/uscode/text/11/524; and 11 U.S.C. § 1328(f) — law.cornell.edu/uscode/text/11/1328.
- HUD, FHA Single Family Housing Policy Handbook 4000.1, last revised November 26, 2025, Bankruptcy (Manual) — hud.gov (PDF).
- U.S. Department of Veterans Affairs, Loan Guaranty 2023 lender conference, “Credit Underwriting” — benefits.va.gov (PDF). Chapter 7 and Chapter 13 guidance.
- Fannie Mae Selling Guide, B3-5.3-07, Significant Derogatory Credit Events — Waiting Periods and Re-establishing Credit, August 7, 2019 — selling-guide.fanniemae.com.
- 15 U.S.C. § 1679b, Credit Repair Organizations Act prohibited practices — law.cornell.edu/uscode/text/15/1679b.
- FTC, “Fixing Your Credit FAQs,” November 2023 — consumer.ftc.gov; and FTC, “Free Credit Reports,” June 2026 — consumer.ftc.gov.
Educational information, not legal or financial advice. Bankruptcy outcomes depend on your case; ask your bankruptcy attorney about your own debts and dates. If a rule here no longer matches its source, tell us. · Advertiser disclosure