Dispute Inaccurate Bankruptcy Entries With A Credit Dispute Letter
If you were able to find some inaccurate information within the credit report, then your next step will be to dispute the inaccurate entries with each of the credit bureaus using a .
The best-case scenario is that theyll be unable to verify the bankruptcy and remove it from your credit report. This is unlikely if its a recent bankruptcy. The older the bankruptcy, the better chances you have of getting it removed from your credit report this way. Nonetheless, if it happens, then great, you can skip the other steps.
If the bankruptcy is verified by the credit bureaus, continue to the next step.
How Does Filing For Bankruptcy Impact Your Credit Score
Bankruptcies are one of the most detrimental items that can appear on your credit report. Like judgments and tax liens, they report as a public record and tank your credit score.
If your credit profile was stellar and you had a high FICO score prior to filing for bankruptcy, you should expect a huge drop in score, according to myFICO. But if your credit was already in the trenches due to the presence of negative items on your report, you would probably only see a modest drop in score, the article adds.
The more accounts included in the bankruptcy filing, the greater the impact on your score. Why so? These accounts will report for seven years from the original date of delinquency. And the impact is the same even if they get discharged through bankruptcy.
Your credit score will start to bounce back over time, and it may not take as long as you think. This is due to the fact that discharged debts are no longer owed. This means your credit utilization ratio will now be much lower. And since amounts owed account for 30 percent of your credit score, you will start to see small increases as creditors update the balances.
But if can get the bankruptcy removed from your credit report, that means good news for your credit score much sooner than later. More on that shortly.
How Long Does A Chapter 7 Bankruptcy Stay On Your Credit Report
A Chapter 7 bankruptcy allows you to repay your creditors in order to settle your debts. However, you have to meet a means test in order to be able to file for this type of bankruptcy.
Once you do file, it takes up to ten years for a Chapter 7 to come off your credit report, assuming you dont take any actions to have it removed sooner.
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What You Will Need
Depending on the type of bankruptcy declared, after 7-10 years, bankruptcy will automatically come off your credit report. But what if you want to remove it early?
Removing bankruptcy early means you have the possibility of getting a mortgage, car loan, or other types of credit without extremely high-interest rates that follow people with bankruptcy.;
Do not let one mistake affect your life for the next ten years.
Bankruptcy makes it challenging to get any type of loan or credit. Having financial limitations can drastically affect your life for the worse.
So, Removing bankruptcy can be a long and tedious process, but it is worth attempting.
For this tutorial you will need:
Hire A Credit Repair Company
These steps I am going to walk you through are how to remove bankruptcy from your credit report yourself. But there are professional companies that can help below;
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How To Get A Dismissed Bankruptcy Case Off Credit Report
If a bankruptcy case is improperly filed or otherwise rejected by a court, the case is referred to as dismissed. This is in contrast to the discharge that signifies the successful conclusion of a bankruptcy filing. Even if bankruptcy relief is not granted, credit agencies are required to report a filed and dismissed bankruptcy case for 10 years, just as any other bankruptcy would be reported. If a dismissed case is erroneously reported on your credit report, then you may be able to have it removed.
Wait 10 years. Bankruptcies automatically drop off credit reports after 10 years, so if you do not want to fight to have your case removed from your credit report, you can wait until it happens automatically. You will still have to suffer the consequences of a damaged credit report and score while the bankruptcy remains.
Contact the bankruptcy court responsible for the filing. If the bankruptcy was reported on your account by mistake, ask for a copy of the proceedings from your local court. If they can produce records that you filed for bankruptcy, you will be unable to remove the dismissed case from your report. If they cannot find a match, ask them to issue an order to have the filing removed from your report.
References
Can A Debtor Get Credit Bureaus To Remove Mention Of Bankruptcy From Credit Reports
A Chapter 7 bankruptcy filing is like any other negative reported item on a credit report. It is something a consumer wants to purge as soon as possible. The goal is to order the credit report, check it for accuracy at least once a year, write bureaus with explanations of unclear or confusing items, dispute inaccuracies, insist the bureau verify the bankruptcy’s filing, and remove any unverified information.
The important thing to realize about is they must take the verification process very seriously. Especially in today’s consumer protection-oriented culture and litigious society, bureaus are required to verify disputed and contested information on credit reports, and savvy, educated consumers know this.
Further, the verification process is difficult to do remotely. Credit reporting bureaus cannot expend resources to personally visit courthouses and review records face to face. Often, courts will not release information for privacy and public policy reasons over the phone, fax, or email. As such, bureaus are at a loss to verify information, including bankruptcy filings, especially in subsequent years after the initial year of a petition’s filing.
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How To Remove A Tax Liens On Your Credit Report
They say that of all the lenders in the world, the one you least want to owe money to is the government. And considering that unpaid tax liens can stay on your credit report indefinitely, that wisdom certainly seems to ring true. If youve got unpaid tax bills from a state, local, or federal agency, the very first step to take is to pay them in full immediately.
However, whether the tax lien on your credit report is paid or unpaid, you can file an IRS Form 12277, which is an application for the withdrawal of a federal tax lien. There is space on the form to explain to the IRS why youre filing for withdrawal. If you mention the financial hardship caused by your low credit score, it may incentivize them to give you a break in the future.
Be sure to specify that you do wish for the IRS to contact the credit bureaus directly on Form 12277 when you file it. Keep in mind that outstanding debt will still remain on file at the courthouse and must be paid.
How To Remove Public Records From Your Credit Report
It happens to the best of us. You blithely open your credit report, just to take a look, when you encounter something you hadnt expected to see. Fraudulent accounts or activity history is scary enough. But, public records can be even more sinister. They have far-ranging implications for your ability to get a loan, secure a lease, or even get a job.
So what can you do if you find a derogatory public record on your credit report? And most importantly, how can you get rid of it?
Contents
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But Ive Never Missed A Payment I Just Have No Hope Of Ever Paying Off My Debt
If youâre one of the few that has been able to stay current with all debt payments, but need to reorganize your financial situation through a Chapter 13 bankruptcy, your credit score will go down initially.Â;
But, thatâs not the end of the story. Once your bankruptcy discharge is granted, your debt amount will go down significantly! And guess what helps build and maintain good credit? A low debt-to-income ratio.Â;
Debt-to-income ratio?!
Put differently, the best credit rating is possible only if your total unsecured debt is as low as possible. A bankruptcy discharge eliminates most, if not all of your debt. Itâs the one thing you can do that your current debt management methods canât accomplish.Â;
Doesnât bankruptcy stay on your record for 10 years?Â;
Well, yes, under federal law, the fact that you filed bankruptcy can stay on your credit report for up to 10 years. This is true for all types of bankruptcy. But, Chapter 13 bankruptcy stays on your credit report for only seven years from the filing date.Â;
According to Experian, thatâs because unlike a Chapter 7 bankruptcy, Chapter 13 involves a repayment plan that pays off some amount of debt before a bankruptcy discharge is granted.Â;
Time Limits For Negative Information
By law, are only allowed to list negative items for a certain amount of time. For most negative information, the time limit is seven years or seven years plus 180 days for a charge-off. Bankruptcy, however, can stay on your credit report for up to 10 years.
An account closed in good standing may remain on your credit report much longer than seven years.
Normally, you dont have to do anything to remove old debts from your credit report after the time limit has run out. The;credit bureaus;will automatically delete the negative items from your credit report once they’re scheduled to be deleted. However, if old accounts are still on your credit report, you can use a dispute process to have them removed.
Note that the credit reporting time limit applies to negative items. There’s no law requiring credit bureaus to remove old accounts that do not contain negative information. Instead, the credit reporting time for these is based on credit bureau reporting guidelines.
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Follow Up With The Credit Bureaus And Request A Deletion
Once you have a letter from the court stating that it hasn’t verified your bankruptcy with the credit bureaus, follow up with the credit bureaus.
Mail another letter saying you contacted the administrator of the courthouse and they told you they don’t furnish records and information to the credit bureaus.
And be sure to include a copy of the court’s response letter to back up your statements.;
In your follow-up letter, you should also request a deletion of your bankruptcy based on a lack of verification.
There is no guarantee of success, but it’s definitely worth a try!
Get A Free Copy Of Your Credit Report
The Fair Credit Reporting Act promotes the accuracy and privacy of information in the files of the nations credit reporting companies. Monitoring your credit report is a necessary practice to keep in check any negative information. Consumers should obtain their free credit report and review it at least once a year to catch any irregularities on time and keep track of disputed items.
Consumers are entitled by law to a free annual credit report from each of the three main reporting bureaus: Equifax, Experian, and TransUnion, and you can access all three of them through one single website:
AnnualCreditReport.com is the only authorized website through which you can gain free access to your credit report from the three major bureaus. Be wary of other sites that promise the same, as they may have hidden fees, try to sell something, or collect personal information.
| Mail: Download, print, fill out, and mail to: |
| Annual Credit Report Request Service P.O. Box 105281 Atlanta, GA 30348-5281 |
Equifax made headlines in 2017 due to a massive data breach, but it remains one of the top 3 services to get your credit report. The company provides a few different service levels if you want to monitor your credit score monthly . Monitoring packages start at $14.95 per month, and the $19.95 per month options include, ironically, a host of identity-theft protection options.
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How Long Does A Bankruptcy Stay On My Credit Report
There are differences in severity between a Chapter 7 and a Chapter 13 bankruptcy. According to the Fair Credit Reporting Act , a Chapter 7 bankruptcy can remain on your credit history for up to 10 years from the filing date and a Chapter 13 bankruptcy can remain for a maximum of 7 years.
The FCRA states only the legal maximum amount of time bankruptcies can appear on your report and not the minimum. This means a bankruptcy can be removed earlier than the legal maximum, but it must be proven that it is misreported, unsubstantiated or otherwise found inaccurate. A bankruptcy cannot be removed simply because you do not want it there.
Send A Letter To The Court Administrator
If the credit bureaus claim they verified their information with the bankruptcy court, you can also write the court yourself, asking the court administrator about its procedure for verifying records with the credit bureaus.
When you do this, be sure to include a self-addressed stamped envelope to increase your chance of getting a response.
When you contact the bankruptcy court, you might have to dig a little bit to find the right department and address for your letter.
Start by visiting the court’s website, and then look for any tab or menu item that says “clerk’s office” or “clerk of courts.”
The court’s website should list phone numbers for various departmentsdon’t hesitate to call around to make sure you’re sending your letter to the correct department. ;
Depending on which court you’re dealing with, you might receive any number of responses.
But the bankruptcy courts say they don’t verify bankruptcy information with the credit bureaus. Instead, the courts post bankruptcies on their dockets, which are public records.
In short, if a credit bureau claims it “verified” your bankruptcy with the court, this almost certainly isn’t true.
If you can get a letter from the court saying as much, you might have a chance of getting the credit bureau to remove your bankruptcy.;
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Ask The Credit Bureaus How The Bankruptcy Was Verified
If the bankruptcy is verified by the , you will next need to send them a procedural request letter asking them who they verified the bankruptcy with.
In some instances, they will claim it has been verified with the courts, even if it is not. In most cases, the courts do not verify bankruptcies for the credit bureaus.
If the credit bureau claims it was verified with the courts, then proceed to step 4.
Waiting For A Bankruptcy Removal From Your Credit History
Once you wait seven to 10 years, the bankruptcy public record will automatically be deleted, and future creditors won’t be able to see it.
The individual accounts that had the debts may have already been deleted during the bankruptcy discharge and bankruptcy plan phase. In some cases, these accounts must remain on the credit report.
The best thing to do is build credit while waiting for the bankruptcy record to clear, follow repayment plans, and avoid more debt.
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Can You Legally Remove Bankruptcy From A Credit Report
By FindLaw Staff | Reviewed by Bridget Molitor, JD | Last updated June 30, 2021
It depends on the situation. You can remove bankruptcy from your credit report if it is untrue, misreported, disproved, or inaccurate.
You cannot legally remove bankruptcy on your credit report just because:
- You do not want it on your record
- You have a good credit score again
- Your debts are paid off
Legally, bankruptcy will stay on your record for 10 years if you filed for Chapter 7 bankruptcy or seven years if you filed for Chapter 13 bankruptcy. After that time, it should be automatically removed.
According to the Fair Credit Reporting Act , these timelines set the maximum time for a bankruptcy filing to stay on your credit report. In some cases it may be on your for less time.
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Although there are certain advantages to filing for bankruptcy, such as getting rid of burdensome debts, there is a downside.;A bankruptcy filing, which is public record, will be picked up by the major credit reporting agencies, significantly impacting a debtors credit score.
A bankruptcy filing raises a red flag to potential lenders and will affect future lending opportunities. It will likely prevent an individual from obtaining credit for a considerable period of time after filing. Even when a debtor is able to obtain credit, the associated interest rate will be exorbitant. For those with a filing listed on their credit report, its important to take measures to have it removed as soon as possible if and when there is a legitimate reason to do so.
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