A consumer asks about the FCRA's ordinary reporting limits for a Chapter 7 bankruptcy and a charged-off credit card, assuming no statutory reporting exception applies. Which periods and starting points are correct?
Correct Answer
C) Bankruptcy: 10 years from the order for relief; charge-off: seven years beginning 180 days after the delinquency that led to the charge-off
C. Use the bankruptcy order-for-relief date and the charge-off delinquency-based clock. The ordinary bankruptcy limit is ten years from the applicable order for relief or adjudication, not discharge. For the charged-off account, the seven-year period begins after 180 days from the delinquency immediately preceding the charge-off. Scope and exceptions: The question excludes statutory exceptions; section 605(b) includes certain high-value credit, insurance and employment reports. These are reporting limits, not debt-enforcement deadlines or promises that every bureau retains an item for the maximum period. Source: FCRA section 605(a)(1), (a)(4), (b), (c)(1), printed pages 23–24 — https://www.ftc.gov/system/files/ftc_gov/pdf/fcra-march-2026.pdf
Why This Is the Correct Answer
C. Use the bankruptcy order-for-relief date and the charge-off delinquency-based clock. The ordinary bankruptcy limit is ten years from the applicable order for relief or adjudication, not discharge. For the charged-off account, the seven-year period begins after 180 days from the delinquency immediately preceding the charge-off. Scope and exceptions: The question excludes statutory exceptions; section 605(b) includes certain high-value credit, insurance and employment reports. These are reporting limits, not debt-enforcement deadlines or promises that every bureau retains an item for the maximum period.
Why the Other Options Are Wrong
Option A: Bankruptcy: 10 years from discharge; charge-off: seven years from the latest payment
Discharge and latest payment are not the specified starting points.
Option B: Bankruptcy: seven years from filing; charge-off: 10 years from the first missed payment
It reverses the ordinary periods and omits the charge-off timing rule.
Option D: Bankruptcy: 10 years from discharge; charge-off: seven years from the charge-off entry
Neither discharge nor the later charge-off entry replaces the statutory trigger.
Exam Tip
Distinguish the reporting clock from discharge, later payments and collection-entry dates.
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