Petition Filed (PTF)
Petition Filed (PTF) is a public record notation on a credit report indicating that a bankruptcy petition has been filed with a federal court. This marker signals to mortgage lenders that the borrower has initiated bankruptcy proceedings, which triggers program-specific waiting periods before a new mortgage can be approved.
What This Means
How PTF Appears on Credit Reports
When a borrower files a Chapter 7 or Chapter 13 bankruptcy petition, the court filing becomes a public record. Credit bureaus pick up this filing and add a PTF notation to the borrower's credit report. The notation remains on the report for 7 to 10 years depending on the bankruptcy chapter: Chapter 7 filings remain for 10 years from the filing date, while Chapter 13 filings remain for 7 years.
Impact on Mortgage Eligibility
A PTF notation does not permanently disqualify a borrower from obtaining a mortgage, but it triggers mandatory waiting periods that vary by loan program:
- FHA loans require a minimum 2-year waiting period after a Chapter 7 discharge and 1 year of on-time payments during a Chapter 13 plan (with court approval)
- VA loans require a 2-year wait after Chapter 7 discharge and 1 year into a Chapter 13 repayment plan
- Conventional loans (Fannie Mae/Freddie Mac) require a 4-year wait after Chapter 7 discharge and 2 years after Chapter 13 discharge
- USDA loans require a 3-year wait after Chapter 7 discharge
These waiting periods are measured from the discharge or dismissal date, not the filing date. A filed but not yet discharged bankruptcy presents additional complications because the borrower's financial obligations are in flux.
PTF vs. Discharge
The PTF marker indicates the petition was filed, not that the bankruptcy is complete. Lenders distinguish between a pending bankruptcy (PTF with no discharge) and a completed bankruptcy (discharge granted). A pending bankruptcy is generally a hard stop for mortgage approval because debts are still being adjudicated.