How To Remove A Legitimate Bankruptcy From Your Credit Report
I hate to start with the bad news, but here you go: if you have a legitimate bankruptcy on your credit reportmeaning, you filed the bankruptcy, went through the legal process, and you know the bankruptcy is the real dealthe chances of getting it removed early are slim.
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But is all about knowing the rules of the game and using little technicalities to your advantage.
And one thing you MUST understand is that the credit bureaus are required by law to report items on your credit report accuratelyand this includes bankruptcies.
If you can find something inaccurate about the way the bankruptcy is reported, you may have a chance at getting it deleted from your credit report.
In other words, you shift the burden of proof to the credit bureaus by requiring them to verify that the bankruptcy is totally and completely accurate.;
Here’s how to do it:
Check Your Credit Report For Bankruptcy Errors
In this step, youll need a copy of all 3 of your credit reports. This is where having a comes in handy. TransUnion is the best credit monitoring service in my opinion, plus you get a free credit score.
Review the credit report carefully for any inaccurate or incomplete information. Here is a list of the most common bankruptcy errors. Names, addresses, and phone numbers Incorrect dates Discharged debts that still show a balance
If you have found no inaccuracies within the information on your credit report, then unfortunately theres nothing that can be done to remove it prematurely, youll have to wait 7-10 years for it to fall off your credit report.
Working With Credit Repair Companies
The method outlined above is one path for how to remove bankruptcies from credit reports. However, it can be very complicated and time-consuming. Depending on your situation, contacting the top credit repair companies may be better than attempting to solve the problem on your own.
A credit repair company is a professional organization. They can help remove incorrect or inaccurate items from your record and advise on improving your score.
One of the specialties of these organizations is getting bankruptcies dropped from credit reports. As with any field, it is crucial to contact a trusted company. As bankruptcy cases are public records, some companies may contact you on their own. Make sure to avoid scammers who promise perfect results at no cost. It is common for the vulnerable to find themselves targeted in this way.
Professionals can make the process easier and are knowledgeable about the dispute process. That said, they cannot guarantee results. There need to be legitimate grounds in the form of an error to drop a bankruptcy from a credit report. Therefore, its crucial to make sure you are willing for a credit company to take your case and to check the terms of their services.
When Bankruptcy Is Removed From The Report
Bankruptcy cannot be removed from a report through the individuals effort. Instead, the filing will remain on the report for a specified number of years. For a Chapter 7 bankruptcy, the event will remain listed on the report for up to 10 years after it was originally filed.;
For a Chapter 13 bankruptcy, it will remain on the report for up to seven years. The bankruptcy event should automatically be removed from the report by the reporting bureaus at the end of this period of time, and the individual should not have to take any additional steps for the event to be removed.
Impact Of Identity Theft On Your Credit Report
Identity theft occurs when someone steals your personal information and uses it to apply for new lines of credit. If these new accounts go into default, they will appear on your credit report and hurt your score.
Cleaning up your credit after identity theft can take anywhere from a day to several months or even years. The longer it takes you to realize someone stole your identity, the more difficult it will be to undo the damage. Monitoring your credit report will help you to stay on top of potential fraudulent charges.
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How A Bankruptcy Filing Affects Your Credit Score
When you file for bankruptcy, your credit score will drop. The range of the drop is usually 130 to 240 points. Typically, people who have a higher credit score of over 700 points lose more points. If you already have a poor credit score, the deduction of these points may not really affect you that much.
When you have a bankruptcy on your credit score, it can be difficult to get approval for new credit and get the best deals people with excellent credit scores enjoy. For example, if you are planning to;get a cell phone plan with bad credit, you will not be eligible to get the best deals available that require no deposit or no upfront fees. If you have bad credit due to a bankruptcy, you may have to settle for a no credit check cell phone plan where you have to buy the device in full and prepay your usage.
Stay On Top Of Your Credit Report
Is your credit score an accurate representation of your credit history or are errors dragging your score down? While the bankruptcy probably took a toll on your score, theres a possibility that other inaccurate or untimely information is in your credit report and impacting your credit rating.
For this reason, you should review your report regularly to ensure all the information contained is accurate and untimely. And should you find issues, dispute them with the credit bureaus promptly.
As mentioned earlier, you can access free copies of your report once a year from the three credit bureaus through AnnualCreditReport.com. Its also a good idea to stay on top of your credit report and activity through a free credit monitoring service, like, , or WalletHub.
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Keep Your Credit Utilization Ratio Low
Another key credit score factor is your it accounts for 30% of your FICO Score. Your credit utilization ratio measures how much of your credit you use versus how much you have available. For example, if your available credit is $10,000 and you use $2,000, your credit ratio is 20% .
Although its often recommended that you keep your ratio below 30%, you may be able to rebuild your credit faster by keeping it closer to 0%.
How To Build Your Credit After Filing For Bankruptcy
If you are one of those people who want to swear off credit altogether, this is actually a bad idea. You want to rebuild your credit score after bankruptcy even if you dont have any immediate plans on making big purchases. This is because when you have a good credit score, it gives you access to better deals and savings. You dont have to pay deposits or high-interest rates when getting necessary services like utilities and cell phone plans.
So, how can you rebuild credit without going under debt again? Here are some practical tips.
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Be Sure To Make Timely Payments On Any New Debt Or Credit Products
Since late payments account for 35 percent of your credit score, you cant afford to not make timely payments on credit products when youre trying to rebuild your credit after bankruptcy. Why so? Well, all it takes is one late payment to plummet your score between 90 and 110 points, notes Equifax.
The good news is creditors wont report past due accounts until theyre delinquent by over 30 days. So, besides the fee that youll incur, a payment thats a few days late isnt the end of the world.
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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Review Your Credit Report
To dispute anything on your credit report, you must review your credit report. Grab your free copy here, and go over your report carefully.
Look for errors in the bankruptcy listing. Were talking about anything incorrect dates, payment amounts, outstanding balance, original balance, or even a misspelled name or wrong account number.
File A Dispute Directly With The Reporting Business
Reporting businesses include credit card issuers and banks. Upon receiving a dispute, they are required by law to investigate and respond. If the reporting business corrects the issue, you saved yourself the step of contacting the credit reporting agency. It is vital to make sure the items are cleaned up for all three credit bureaus mentioned above.
However, trying to work out your debt directly with the lender will not necessarily change the amount of time said negative item would remain on your credit report. It will only change if the dispute is resolved with the lender and deleted from your credit report.
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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;
You can also ask them about removing dismissed bankruptcies credit report.
- ;or;Call For Free Consultation Now:;
All you have to do is give them a call for a free consultation to see what they can do for you.
Working with a professional is an excellent option for people who are busy, looking for a stress-free solution, or want to make sure an expert is handling the situation.
Someone Else Does The Work
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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Can A Dismissed Bankruptcy Hurt Your Credit
Whether your bankruptcy is dismissed or your debt is discharged, the 3 major credit bureaus treat bankruptcies the same. That means even if your debts aren’t cleared by bankruptcy, your credit score can nose dive up to 200 points! It gets worse. It can stay on for up to 10 years. So what can you do?
Can I Remove A Bankruptcy From My Credit Report On My Own
It is possible to pursue removing a bankruptcy from your credit report on your own, and some people have managed to do so. However, it is a time-consuming, labor-intensive process that many people find complicated, confusing, and frustrating.
We encourage you to learn as much as you can about credit report disputes and credit repair processes, then count the real cost of DIY credit repair before committing to handling this important task on your own.
People who have needed to remove a bankruptcy from their credit reports have achieved success by working with a provider like Lexington Law Firm. If other questionable negative items are affecting your credit report and score, we can help you challenge those as well.
Contact us today for a free personalized credit report consultation to find out how we can help you meet your credit goals.
Reviewed by Vincent R. Mayr, Supervising Attorney of Bankruptcies at Lexington Law. by Lexington Law.
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How To Remove A Bankruptcy From Your Credit Report
Bankruptcy can be scary, but its important that you arm yourself with as much information as possible to navigate the process.
In this article, well walk you through some of the most commonly asked questions around bankruptcy, how it can affect your credit score, and how to get a bankruptcy removed.
How Long Does A Bankruptcy Stay On Your Credit Report
The amount of time a bankruptcy stays on your credit report is determined by the type of bankruptcy you filed for.
- A Chapter 7 bankruptcy will be removed from your credit report automatically in 10 years because, in this case, none of the debt is repaid.
- A Chapter 13 bankruptcy is cleared in 7 years since the debt is partially repaid.
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Diy Vs Professional Credit Repair
It can often feel like credit repair is a catch-22. You may not have a lot of expendable income to hire a professional credit repair company, but you likely dont have the know-how or emotional bandwidth to tackle it yourself either. We get it.
Bankruptcy is the negative item we most encourage our readers to get professional help with though. The steps weve outlined are advanced tactics that in most cases are best left to credit repair specialists. They are more familiar with the ins and outs of the credit bureaus and court systems, as well as the steps well be outlining.
Below are the credit repair companies we recommend.
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:
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Check Your Credit For Inaccuracies
You need to look for any inaccuracies that may be part of the bankruptcy entry. You will want to look very carefully for any mistake.
- Identity information
- Accounts that may belong to another person with the same or similar name
- Incorrect accounts that occurred from identity theft
- Closed accounts reported as open
- You are reported as an owner of an account but are only an authorized user
- Accounts incorrectly reported as late or delinquent
- Incorrect date opened, date of last payment, date of delinquency
- Same debt listed more than once
- Accounts that appear multiple time with different creditors listed
- Incorrect current balance
- Incorrect credit limit
There may be other inaccuracies you find as well; the important part is to look closely and pay attention to detail.
If there are any inaccuracies, you simply dispute the bankruptcy entry with the credit bureaus, saying the information is incorrect and therefore should be removed.;
Dispute via letter with the mistakes explained and make sure to send to each bureau. If there are no inaccuracies, move on to the next step.
Make Sure The Right Accounts Were Reported
After your debts are discharged, review your credit reports to make sure that only the accounts that were part of your bankruptcy are reported by the as discharged or included in bankruptcy on your reports. If you find mistakes, notify the credit bureaus and dispute the errors on your credit reports .
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How Does A Bankruptcy Impact Your Credit Score
Depending on where your was to start with, you can expect your bankruptcy to drop your score by 150 to 200 points, and sometimes even a bit more than 200 points, per FICO guidelines.
But the negative impact does lessen over time.
As the months and years pass, you’ll likely see your credit score go back upthis is because the bankruptcy clears your debts, which means those negative items no longer factor into your credit score.
A bankruptcy may also help improve your rate , which can boost your credit score over time.
After seven or 10 years, depending on which type of bankruptcy you filed, the bankruptcy will drop off your credit report and will no longer affect your credit score.
While a bankruptcy will undoubtedly hurt your credit score, it’s often better than allowing unpaid bills and collection accounts to pile up on your credit report.
If you’re consistently struggling to keep up with your financial obligations, bankruptcy might be a good option.;