Duration
| Ch.7 | Ch.13 | |
|---|---|---|
| On report | 10 yrs | 7 yrs |
| Score drop | -100 to -200 | -100 to -200 |
| Mid-600s | 2-3 yrs | 2-3 yrs post-discharge |
| Rebuild starts | ~4 months | 3-5 years |
Paradox: Ch.7 filers rebuild immediately. At year 3, they often have better scores than Ch.13 filers still in plan.
Rebuilding Steps
- Secured card immediately after discharge
- Utilization below 30%
- Every bill on time
- Authorized user on family card
Credit rebuilding is a marathon, not a sprint. The single most important factor is consistent on-time payments over a period of 12-24 months. After discharge, pull your free credit reports from annualcreditreport.com and dispute any discharged debts that still show a balance owed. Errors on post-bankruptcy credit reports are common and can suppress your score by 50-100 points.
A credit-builder loan from a credit union is another effective tool. The lender holds the funds in a savings account while you make monthly payments, and those payments are reported to the credit bureaus. After 12 months, you have both a credit history and a savings cushion. For a full guide, see bankruptcyfreshstart.org.
Mortgage Wait
| Loan | Ch.7 | Ch.13 |
|---|---|---|
| FHA | 2 yrs | 1-2 yrs |
| Conventional | 4 yrs | 2 yrs |
Related
Last updated: March 2026. Not legal advice.
Part of the Bankruptcy Transparency Network