What triggers a bankruptcy alert?
Filing Chapter 7 bankruptcy
- When you file Chapter 7 bankruptcy, all accounts listed in your bankruptcy will be updated to show "account included in bankruptcy." Once the bankruptcy is discharged, the account will be updated to show "discharged in bankruptcy." Although the Chapter 7 bankruptcy public record will remain on the credit report for 10 years, the accounts included in the bankruptcy are removed after seven years.
Filing Chapter 13 bankruptcy
- With a Chapter 13 bankruptcy, you are required to complete a debt repayment plan in order to have your bankruptcy discharged. The repayment plan may take anywhere from 3-5 years to complete. Because you repay a portion of the debts owed, Chapter 13 bankruptcies will be automatically removed seven years from the date it is filed.
Is there anything I should do?
If you recognize the inquiry, you can mark the alert as resolved in Aura.
If you don’t recognize the inquiry, review the following questions as they may help you recognize the alert:
- Do you recognize the name of the creditor? In some cases the name shown on the credit report is abbreviated.
- Is an account shared with a family member impacted by a bankruptcy? An account may be part of your credit report if you are an authorized user or cosigner.
- If you still don’t recognize the alert, we recommend contacting the creditor and letting them know about this credit alert. They should be able to help you identify it. The creditor phone number should be included in the details of the alert you received.