Process Terms
Bankruptcy: Definition
A legal proceeding for debt relief that affects credit reporting.
Definition
Bankruptcy is a federal court proceeding that provides debt relief to individuals or businesses. For credit reporting, bankruptcy information must be reported using specific Consumer Information Indicator codes. Chapter 7 and Chapter 13 bankruptcies have different reporting requirements and durations on credit reports.
Examples
Consumer Information Indicator A = Petition for Chapter 7Consumer Information Indicator D = Discharged from bankruptcy
Usage Notes
- Chapter 7 remains on report 10 years
- Chapter 13 remains on report 7 years
- Affects how accounts are reported during and after
Related Terms
More Process Terms
Dispute
A consumer's challenge to the accuracy of reported information.
ACDV (Automated Consumer Dispute Verification)
The system used by bureaus to process consumer disputes.
e-OSCAR
The industry system for processing credit disputes electronically.
File Submission
The process of sending Metro 2 data to credit bureaus.
Credit Report
A detailed report of a consumer's credit history.
Credit Score
A numerical representation of creditworthiness.
Tradeline
A record of a single credit account on a credit report.
Soft Inquiry
A credit check that doesn't affect credit scores.
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