What Public Records Appear on a Credit Report?

Public records on a credit report refer to financial information made available by government entities, historically collected by credit bureaus for consumer credit files. These reports compile various data points about an individual’s financial history to help lenders and other entities assess creditworthiness. While credit reports have always contained details like bill payment history and outstanding debts, the scope of public records included has evolved.

Public Records Previously Reported

Historically, credit reports frequently contained public record information like civil judgments and tax liens. Civil judgments are court orders establishing a financial obligation, often from lawsuits requiring monetary damages. Tax liens arise when an individual fails to pay taxes, allowing the government to claim a legal right to their property. These entries impacted an individual’s credit standing.

A significant shift occurred with the National Consumer Assistance Plan (NCAP), an initiative launched by the three major credit bureaus—Equifax, Experian, and TransUnion—between 2015 and 2018. This plan aimed to enhance credit reporting accuracy and simplify error correction. It established stricter standards for public record data: civil judgments and tax liens needed to contain a consumer’s name, address, Social Security number, or date of birth, and be refreshed every 90 days. Many records did not meet these new requirements due to inconsistent record-keeping. Consequently, by April 2018, the major credit bureaus largely removed civil judgments and tax liens from consumer credit reports.

Public Records Currently Reported

Presently, bankruptcies are the primary public record information appearing on credit reports. This includes Chapter 7 and Chapter 13 filings. Bankruptcies are included because they represent a significant financial event with a direct impact on an individual’s ability to repay debts. Unlike civil judgments and tax liens, bankruptcy filings typically contain sufficient identifying information, like Social Security numbers, making accurate matching more reliable.

Chapter 7 bankruptcy, often referred to as liquidation bankruptcy, involves the sale of certain non-exempt assets to repay creditors, with remaining eligible debts typically discharged. Chapter 13 bankruptcy, known as a wage earner’s plan or reorganization bankruptcy, allows individuals with regular income to develop a court-approved repayment plan for their debts over a period, usually three to five years. Both types of bankruptcies are considered important indicators of financial distress and are therefore maintained in the public records section of a credit report. While the bankruptcy itself is reported, individual accounts included in the bankruptcy may also show a notation indicating their inclusion.

How Long Public Records Stay

The duration public records remain on a credit report is primarily governed by the Fair Credit Reporting Act (FCRA). For bankruptcies, the length of time varies by filing type. A Chapter 7 bankruptcy generally remains on a credit report for up to 10 years from filing. This longer duration reflects Chapter 7’s nature, often resulting in the discharge of most unsecured debts without a repayment plan.

In contrast, a Chapter 13 bankruptcy typically stays on a credit report for up to seven years from the date of filing. This shorter period reflects its structured repayment plan, demonstrating the debtor’s effort to repay obligations. Removal of the bankruptcy entry is automatic once the specified timeframe passes. While the bankruptcy itself remains, its negative impact on credit scores may lessen over time, especially as new positive credit history is established.