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How Does a Foreclosure & a Chapter 13 Bankruptcy Affect Your Credit Report?

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Foreclosure can take your good credit score along with your house.


A foreclosure, just by itself, is bad news for your credit. It stays on your history for seven years and delivers a big blow to your credit score. If you formerly had a stellar score, you may see it drop by 100 points or more; borrowers with mediocre credit usually suffer lower drops. However, a foreclosure is only one bad item on your history. If you get back on track and make regular payments on your other accounts, your credit may start picking back up within a couple of years.

Chapter 13

Bankruptcy can do even more damage than a foreclosure because it doesn't affect one credit account: it affects all of them. The debts you erase in bankruptcy don't disappear from your report -- they stay there like the

bankruptcy itself, for anyone researching your credit to find. After seven years, a Chapter 13 bankruptcy and the dead accounts get scrubbed; Chapter 7, which wipes out more of your debts, sticks around for up to 10 years.

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