After Business Bankruptcy: 6 Records That Show the Filing and How Long

Several different documents, reports, and websites will show that your business filed for bankruptcy. But there is no single clock. It just depends on the record. The court file is a public record. Experian lists bankruptcies nine years and nine months on business reports. Equifax lists bankruptcies on its business reports for ten years from the date filed, but only seven if it was a Chapter 12 or Chapter 13 bankruptcy. Bankruptcies that include personal credit debt can be listed on personal credit reports for up to ten years. Any accounts included in the case can linger for up to ten years as well. Also, the closed company’s credit file can include the bankruptcy.

The Fair Credit Reporting Act sets up limits for how long consumer credit agencies can report negative information. Most negative data is limited to seven years, and bankruptcy records can be maintained for as long as 10 years. The act does not require that business credit agencies comply with the same rules, so each one sets their own voluntary policy.

Anyone can look up a business bankruptcy. A bankruptcy court file is not a report or an evaluation of the information. It is just the official record of the bankruptcy proceeding, and very little is kept out of view. The courts do not send anything to credit bureaus. See what is in your bankruptcy court file online through the federal government’s PACER program. There is a charge of 10 cents a page to view material through this federal government portal, though it can never be more than 3 dollars per document, like a docket or order. Also, the fee is waived for people who stay under a low enough quarterly total.

Anyone who pays a bureau for access can buy a report on a business without that business’s permission. You don’t have the same right to get an annual copy for free either. Also, not all creditors pull from the same credit bureaus. Agencies don’t share this information.

Normally, personal credit can only report a bankruptcy for 10 years after the date of the order for relief. The limit can be lifted for larger loans of at least 150,000 dollars or jobs that pay 75,000 dollars or more a year. For Equifax personal reports, any chapter 12 or 13 stays for seven years from the filing. The same time frame applies to a dismissed case of any chapter. For a withdrawn case, it must be labeled withdrawn once the credit reporting bureau gets evidence it was withdrawn.

Then there are the individual accounts included in the bankruptcy. Those old accounts do not go away automatically. They are separate records. These accounts can show as part of the bankruptcy on your report for up to 10 years from the date of your last activity, according to Equifax. Check them to see what they say.

Once a business credit file is created, it is kept under the credit agency’s retention policy, even after a business closes. And if you set up a new venture, create a separate legal entity with its own tax ID. Business reports and personal reports are kept separate. However, some business credit scores are built with business owners’ personal credit. It is common for agencies to mix the owner’s personal credit with business activity if it is a brand new operation with little credit history.

You should check your credit reports at least quarterly with the three major bureaus. Each of the agencies can keep unique information, so review each one. To dispute errors such as outdated items, contact each bureau separately. If a bad mark is incorrect, you do not have to provide paperwork to prove it.

There is no firm rule on a required resolution timeline for these problems. Business credit reporting agencies may try to resolve issues within 30 days. Follow up and stay on top of the bureau during the process. Keep copies of everything and contact the vendor who reported the incorrect information.

Rebuild His or Her Credit Profile

A bankruptcy does not mean that you have to wait until the 10 years are up to rebuild your credit profile. An accurate record of a bankruptcy cannot easily be removed, but its impact on credit worthiness usually fades over time. Always pay bills on time to rebuild a good profile.