When you file for bankruptcy, it is reflected on your credit reports almost immediately because the credit bureaus are regularly monitoring the bankruptcy court filings. The credit bureau then shows the bankruptcy, under the public records section of your report, for 7-10 years from the filing date depending on the chapter filed. While the bankruptcy notation reflects negatively on your credit, your credit is likely to improve when the bankruptcy is properly shown on your report after your debts have been discharged.

Unfortunately, there is no link between the bankruptcy court and the 3 major credit reporting bureaus (Experian, TransUnion, and Equifax). The credit bureaus don’t monitor each bankruptcy case, beyond the initial filing, and the bankruptcy court doesn’t provide information to the credit bureaus. As a result, your credit report may not even show that you received a discharge of your debts. Additionally, account information on your report is likely to contain errors that can cause you to continue to have credit problems.

If you are considering bankruptcy as an option, be sure to discuss this topic with a bankruptcy professional so that you can prepare for, and resolve this issue in an efficient and effective manner.