Bankruptcies and foreclosures are unpleasant experiences to go through that, unfortunately, also appear as negative information on your credit report. Here is a look at how long it takes for that negative information to be removed.
A Chapter 13 bankruptcy, which requires at least a partial repayment of the debt owed, is deleted seven years after the date of filing, while a Chapter 7 bankruptcy is deleted after ten years because none of the debt is repaid.
Foreclosure begins when someone falls behind in their monthly mortgage payments and can result in the loss of their home. Once a foreclosure is completed, that information will remain on a credit report for up to 7 years.
Negative information from bankruptcies and foreclosures will be automatically deleted from your credit report after the 7 to 10 years, but you likely won’t be able to obtain a new loan in the first two years, and, after that, you may be able to obtain a loan but at a much higher interest rate.
If you notice that the negative information still appears on your credit report after the seven to ten years have passed, you can contact the credit bureaus directly and ask for it to be removed.