How long does it take to recover from bankruptcy?
It typically takes seven to 10 years for full credit recovery
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Bankruptcy stays on your credit report for up to ten years. How long it takes you to recover depends on the type of bankruptcy filed, the case’s complexity, the total debt amount, whether you have legal support and other factors. Your credit score takes a hit when you file for bankruptcy — that’s a given — but responsible money management can help you recover faster.
Chapter 13 usually takes up to seven years to fall off your credit report, but Chapter 7 and Chapter 11 can take up to ten years.
Jump to insightFrom paying your bills on time to maintaining steady employment, demonstrating healthy financial habits is key to speeding up your recovery.
Jump to insightAfter bankruptcy, you may not be approved for loans or face higher rates, but stay the course and consider alternatives like using a co-signer or paying in cash.
Jump to insightTypical recovery timeline
How long it takes to recover from bankruptcy depends on the type of bankruptcy you file. If you file for bankruptcy, there are several options, but Chapters 7, 11 and 13 are the most common.
Chapter 7 lets you keep your assets, making it popular with individual filers. Business owners tend to file Chapter 11, which allows for a reorganization of the company. With Chapter 13, you get to keep certain assets, but you must agree to a repayment plan that typically lasts three to five years.
» MORE: Does bankruptcy clear all debt?
Other factors affecting recovery time
The length of time it takes to recover from bankruptcy can vary from person to person based on the details of your case and other factors.
- Difficulty of the case: More complex cases may take longer to settle, affecting your credit score for longer.
- Amount of total debt: Cases with less debt tend to be resolved faster than those involving large amounts of debt.
- Overall income: Your income will determine your ability to repay your debt.
- Legal help: If you have an attorney handling your case, it could speed up the process.
- Court backlog: The court’s caseload can significantly slow your case if there is a backlog.
» MORE: Is filing Chapter 13 worth it?
5 tips to rebuild financial health
There are some things you can do to help speed up the timeline so you can return to good financial health that much sooner.
1. Pay bills on time
According to FICO, payment history accounts for 35% of your credit score, making it the single most critical factor in improving your credit score. Paying your bills on time can help improve your credit score faster while demonstrating a reliable payment history to future lenders.
» LEARN: If I file bankruptcy, what happens to my car loan?
2. Consider a credit counselor
A credit counselor can help you analyze your expenses, teach money management skills and create a realistic budget. A legitimate credit repair company can also help you rebuild your credit. However, it’s important not to fall for scammers who promise to fix your credit sooner than actually possible.
3. Get a job (and keep it)
When you file bankruptcy, the court will assess whether you can meet your repayment obligations, and your employment is a major part of that. Steady employment doesn’t just help you meet your debt repayment obligations — it shows creditors you have reliable income to pay your debts and keep up with future payments.
» RELATED: Job search statistics (2025)
4. Maintain a bank account
If bankruptcy leaves you with charged-off bank accounts, look for a new checking account or high-yield savings account. Maintain a positive balance, and keep your statements in case you need to show proof of payment later.
5. Secure housing
Whether you rent or own, having stable housing is an essential factor that creditors look for when deciding whether to approve your loan after bankruptcy. Regular payments help build a good credit history and show you can maintain your obligations over time. This is especially important if you need to show a credit report for rental or loan approval in the future.
» RELATED: Best (and worst) states for renters
Life after bankruptcy
Bankruptcy can be a difficult and emotional process. It’s important not to feel defeated. It will take some time to nurse your score back to good health. The good news is you may begin to see improvements in your credit score in less than a year.
If you qualify, be prepared to receive higher interest rates on auto loans, home mortgages and credit cards. We suggest looking for the best lenders and loans for bad credit. Or, you might consider asking a parent or loved one to co-sign on your loan.
If you cannot qualify, do not fret. Give it some time, and save money to pay for your purchase in cash. Be sure to regularly make deposits into your savings account for future needs.
FAQ
Is it possible to get a mortgage after bankruptcy?
It may be hard to get a home mortgage after bankruptcy. A bankruptcy is concerning for lenders because it shows you have been unable to meet your payment obligations in the past. Still, you might get approval if you have increased income or a co-signer.
Are there alternatives to bankruptcy that might be worth considering?
Before filing for bankruptcy, consider a debt consolidation loan, which combines all your debts into one loan with a single monthly payment and a potentially lower interest rate. You can also contact your lenders to negotiate a potential debt settlement that writes off some of your debt so you do not have to file for bankruptcy.
How does bankruptcy affect employment opportunities?
Your employer may run a credit check before offering you employment. This is especially common in transportation, banking and retail industries but may also be requested for other sectors.
Bottom line: How long does bankruptcy stay on your credit report?
How long bankruptcy stays on your credit report depends on the type of bankruptcy you file. Bankruptcy generally stays on your credit report for up to seven years with Chapter 13. Chapter 7 and Chapter 11 stay on your credit report for up to 10 years.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Experian, “When Does Bankruptcy Fall Off My Credit Report?” Accessed Jan. 31, 2025.
- United States Courts, “Chapter 7 - Bankruptcy Basics.” Accessed Jan. 31, 2025.
- United States Courts, “Chapter 11 - Bankruptcy Basics.” Accessed Jan. 31, 2025.
- United States Courts, “Chapter 13 - Bankruptcy Basics.” Accessed Jan. 31, 2025.
- FICO, “What Are the Different Types of Bankruptcy and How Is Each Considered by My FICO Score?” Accessed Jan. 31, 2025.
- FICO, “What is Payment History?” Accessed Jan. 31, 2025.
- Experian, “7 Things Lenders Look at Besides Your Credit Score.” Accessed Jan. 31, 2025.
