> For the complete documentation index, see [llms.txt](https://developers.bloomcredit.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://developers.bloomcredit.io/docs/v2.1/furnishment/consumer-events.md).
# 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.
## 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
### 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
### 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
### 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
## 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 |
## 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
Nice to know
* 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.
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