What Happens To Your Credit After Chapter 7 Bankruptcy in Oregon?
Chapter 7 allows permanent forgiveness of eligible debts under federal bankruptcy law, according to the United States Bankruptcy Court District of Oregon and the book "How to File for Chapter 7 Bankruptcy." Even if Chapter 7 offers you at least some financial relief, your credit reports will suffer damage for seven to 10 years.
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Public Record Report
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A "public record" report that you declared Chapter 7 is issued to each major credit bureau right after you file bankruptcy, according to Experian. Such negative reports remain for 10 years from the date you filed Chapter 7 as an Oregon resident and will remain even if you move to another state.
Existing Account Updates
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Once an Oregon bankruptcy judge finalizes your Chapter 7 case, the local court staff will issue new reports to the credit bureaus, according to the book "How to File for Chapter 7 Bankruptcy." Each credit card, loan or collection account discharged in bankruptcy should update on your credit reports to read "zero" balance and "included in bankruptcy." Such reports last for seven years from the date you went delinquent on the account, according to Experian.
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Exceptions
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Chapter 7 won't update negative credit reporting or discharge your obligations to pay child support, alimony, court fines or tax bills less than three years old, according to the U.S. Bankruptcy Court District of Oregon.
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