Re: SOL versus 7.5 Years
06-28-2007 02:13 PM
BK 7 is 7 years from the filing date not the discharge date.
15 USC 1681c(a)(1)
Cases under title 11 or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.
FCRA doesn't distinguish. 10 years for all. However, the CRAs will report a BK7 for the full 10 years, but a BK13 for only 7 years. However, EQ is said to report BK13s for the full 10 years.
CRAs are also said to use the filing date for BK13, but the discharge date for BK7. I suppose the reasoning is that with a BK7, until the BK court approves your filing and discharges the debt, it ain't a done deal. With BK13, filing starts you down the path to repayment and that takes a couple of years.
Practically speaking, if the CRAs reported BK13s for the full 10 years and used the discharge date, no one would file BK13. With BK7, they are looking to punish you to the full extent of the law.