Texas consumers who are considering filing for bankruptcy might wonder how long it will remain on their credit record. A Chapter 7 bankruptcy remains on a person's credit report for ten years while a Chapter 13 bankruptcy stays on the credit report for seven years.
More than half a million people file for bankruptcy annually, mostly because of medical debt. Unfortunately, bankruptcy is not always easy and could have consequences. People might struggle to rent a place, buy a home or get a loan after a bankruptcy. Tax debts, student loans, and debts related to child or spousal support generally cannot be discharged in a bankruptcy. With a Chapter 13 bankruptcy, a person even continues paying back creditors although it is on a manageable schedule. In a Chapter 7 bankruptcy, a person may keep some assets while others are liquidated to pay creditors.