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When will Chapter 7 bankruptcy drop off of credit reports?

When looking into debt relief options, many Washington residents will cast a wide net. Chapter 7 bankruptcy is a common choice, and one that can lead to the permanent discharge of many types of unsecured debt. However, many consumers are concerned about how long a personal bankruptcy will remain on their credit reports. A newly published article delves into the matter, and finds that a great many Americans will soon see their bankruptcy drop off of their credit histories.

Researchers believe that millions of Americans will soon enjoy a boost in their credit score as their Chapter 7 bankruptcy drops off of their current credit reports. This is due to the fact that around six million Americans sought bankruptcy protection due to to the decline in the housing market and overall economic instability, peaking in the year 2010. As we near the seven year mark on these filings, the bankruptcies will begin to drop off of individual credit reports.

It is believed that some of those consumers will use their improved credit score to secure a new mortgage and re-enter the housing market. Others will simply continue to make positive financial decisions, including setting aside money for their children's education, starting a new business venture or investing for retirement. No matter how they take advantage of their improved credit score, most people are pleased that their Chapter 7 bankruptcy is no longer a vital part of their overall credit history.

For those in Washington who are concerned about how a Chapter 7 bankruptcy could impact their credit score, it is important to understand that credit repair efforts can begin immediately. With the right degree of motivation and effort, consumers can begin making significant improvements in their credit rating as soon as their bankruptcy is made final. By the time the matter drops off of their credit report, many people are already enjoying a high level of financial stability.

Source:, "Disappearing bankruptcies could start new wave of homebuying", Kelsey Ramirez, May 30, 2017

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