---
updatedAt: 2026-03-02T16:01:11.000Z
agentTools:
  projectIndex: https://developers.bloomcredit.io/llms.txt
---

# Consumer Events

## Bankruptcy

A bankruptcy filing is a public court record. Credit bureaus report:

* Chapter type (Chapter 7, 11, 12, 13)
  * Chapter 7 and 13 most common
* Filing Date
* Status (e.g., filed, reaffirmed, confirmed, discharged, dismissed)
* Disposition date (when applicable)

The chapter determines how long the bankruptcy remains on a credit report and how lenders typically interpret risk.

<br />

## Chapters

### Chapter 7 — Liquidation Bankruptcy

**What It Means:**

* Designed to eliminate unsecured debt (e.g., credit cards, medical bills)
* Non-exempt assets may be liquidated, though many cases are “no-asset”
* No repayment plan
* Fastest bankruptcy type

**Timeline:**

* Discharge typically occurs 3–6 months after filing

**Credit Reporting:**

* Reported as “Chapter 7 Bankruptcy”
* Remains on credit report for up to 10 years from filing date
* Individual accounts included should show $0 balance / included in bankruptcy
* Seen as the most severe bankruptcy type due to full discharge without repayment

<br />

### Chapter 13 - Wage Earner/Repayment Plan

**What It Means:**

* Individual agrees to a court-approved repayment plan (3–5 years)
* Used to catch up on mortgages, car loans, or taxes
* Debts are not eliminated immediately

**Key Terms:**

* Confirmed: Court has approved the repayment plan
* Discharged: Occurs only after successful completion of the plan

**Credit Reporting:**

* Reported as “Chapter 13 Bankruptcy”
* Remains on credit report for up to 7 years from filing date
* May show statuses such as:
  * Filed
  * Confirmed
  * Discharged (after plan completion)
* Often viewed more favorably than Chapter 7 because repayment is made

<br />

### Chapter 11 - Reorganization Bankruptcy

**What It Means:**

* Typically used by businesses, sometimes high-income individuals
* Debts are restructured through a reorganization plan
* Business usually continues operating

**Key Terms:**

* Confirmed: Reorganization plan is approved and binding
* Discharge: Often tied to confirmation, but depends on plan terms

**Credit Reporting:**

* Reported as “Chapter 11 Bankruptcy”
* Reporting duration varies but is commonly up to 10 years
* Interpretation depends heavily on:
  * Whether the filer is an individual or business
  * Whether the plan was successfully completed

<br />

### Chapter 12 - Family Farmer or Fisherman

**What It Means:**

* Specialized version of Chapter 13
* For qualifying family farmers and fishermen
* Allows seasonal or irregular income considerations

**Credit Reporting:**

* Rare, but reported similarly to Chapter 13
* Typically remains for up to 7 years from filing

<br />

## Status Terms

* Filed: Bankruptcy case initiated
* Confirmed: Repayment or reorganization plan approved (Ch. 11 / 13)
* Reaffirmed: Removes debt from bankruptcy proceedings (debts a consumer wants to retain e.g. mortgage)
* Discharged: Legal release from qualifying debts
* Dismissed/Removal: Case closed without discharge (generally worse than discharge)

## Bankruptcy Summary

| Chapter    | Purpose        | Repayment?       | Discharge Timing      | Credit Report Duration |
| ---------- | -------------- | ---------------- | --------------------- | ---------------------- |
| Chapter 7  | Liquidation    | No               | 3–6 months            | Up to 10 years         |
| Chapter 13 | Repayment plan | Yes (3–5 yrs)    | After completion      | Up to 7 years          |
| Chapter 11 | Reorganization | Yes (plan-based) | Often at confirmation | Up to 10 years         |
| Chapter 12 | Farmer/Fisher  | Yes              | After completion      | Up to 7 year           |

<br />

## Bloom Bankruptcy Events:

* Filed
  * Initiates Bankruptcy
* Removal
  * Dismissed by Courts or rescinded by Consumer
* Confirmed
  * For Chapters 11 or 13, removes Bankruptcy indicator during repayment
* Discharged
  * Completion of Bankruptcy
* Reaffirmed
  * Removes collateral from Bankruptcy in order to retain debt (e.g. mortgage or car loan)
* Reaffirm Rescinded
  * Adds collateral debt back into Bankruptcy
* Reversed
  * Reversing a bankruptcy event will bring the consumer to its previous bankruptcy state
  * If there is no previous bankruptcy state, the bankruptcy will no longer be reported

<details>
  <summary style={{ fontWeight: "bold" }}>Nice to know</summary>

  <p>
    * When you report a bankruptcy, it will be reported on all accounts related to that consumer.
    * When you discharge a bankruptcy, you can choose which accounts the bankruptcy should be *excluded* from.
  </p>
</details>