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.
Learn Positive Financial Habits
As time goes by after your bankruptcy and you begin to earn new forms of credit, make sure you dont fall back into the same habits that caused your problems. Only use credit for purchases you can afford to pay off, and try using a monthly budget to plan your spending. Also, work on building an emergency fund to cover three to six months of expenses so a random surprise bill or emergency wont cause your finances to spiral out of control.
Can You Remove A Bankruptcy On Your Own
Like all negative item disputes, its entirely possible to complete the process on your own. However, removing a bankruptcy from your credit report early can be a lengthy and tedious process that doesnt guarantee results.
You can dispute the bankruptcy either by stating an inaccuracy of the information on your credit report or by asking the credit bureau how it verified your bankruptcy. As with any dispute, they must respond to your procedural request letter within 30 days.
In most cases, theyll say that they verified it with the courts, but this is unlikely. You must then contact the court to ask how they verified your bankruptcy.
If they respond that they never verified it, you should get that statement in writing, send it to the credit bureau, and ask them to remove the bankruptcy.
This method isnt guaranteed, but it might be worth trying. Otherwise, enlist the help of a credit repair company to navigate the process for you.
Credit repair companies are highly experienced at disputing negative items on your credit reports. They specialize in getting bankruptcies deleted from your credit report. They also work to remove other negative information included in the bankruptcy, like charge offs and collections.
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Different Types Of Bankruptcies
There are many types of bankruptcy. The most common for individuals and small businesses are Chapter 7 and Chapter 13.
The differences between the two are essential to note. They determine your options for how to remove bankruptcies from credit reports. Ultimately, its the different maximum duration on your records and the repayment plans that determine how much your credit scores drop.
In both cases, it might be prudent to consult a bankruptcy lawyer or consultant. Legal advisors can help you to understand the details of each plan. Knowing the details of the type of bankruptcy can help in understanding how to contest the procedure. Plus, it will help you assess how bankruptcy affects your credit score in the long run.
Building Credit After Chapter 7 Bankruptcy
Most can rebuild their credit rating and have a better score than ever within 1 – 2 years after they file Chapter 7 bankruptcy. But, you canât take this for granted. To get the full benefit of your bankruptcy filing, youâll have to make an effort to improve your credit score.
Getting new credit after filing bankruptcy – itâs easier than you might think!Â;
One of the biggest surprises for many bankruptcy filers is the amount of car loan and credit card offers they receive – often within a couple of weeks of filing their case. Itâs a lot! Why?Â;Â;
Filing Chapter 7 bankruptcy makes you a low credit risk
The Bankruptcy Code limits how often someone can file a bankruptcy. Once you get a Chapter 7 bankruptcy discharge, youâre not able to get another one for 8 years. Banks, credit card issuers and other lenders know this.Â;
They also know that, with the possible exception of your student loans, you have no unsecured debts and no monthly debt payment obligations. This tells them that you can use all of your disposable income to make monthly payments.Â;
Beware of high interest rates
Pay close attention to the interest rates in the new credit offers you receive. Credit card companies and car loan lenders have the upper hand here. They know you want to build your credit rating back to an excellent FICO score. And they know that youâll be willing to pay a higher interest rate than someone with perfect credit and no bankruptcy on their record.Â;
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%.
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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.
You Can Improve Your Credit After Bankruptcy
Dont give up after youve filed for bankruptcyyou can improve your credit score. But be patient, because it could take some time. If you want a little extra help, sign up for our free , or consider ExtraCredit. Restore It, a feature on ExtraCredit, gives you an exclusive discount to one of the leaders in credit repair. They can help you work to get your score where you want it to be after youve filed for bankruptcy.
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Get Your Bankruptcy Removed Professionally
In some cases, we recommend speaking with a Credit Repair professional to analyze your credit report. It’s so much less stress, hassle, and time to let professionals identify the reasons for your score drop.If you’re looking for a reputable company to increase your credit score, we recommend Credit Glory. Call them on or setup a consultation with them. They also happen to have incredible customer service.Credit Glory is a credit repair company that helps everyday Americans remove inaccurate, incomplete, unverifiable, unauthorized, or fraudulent negative items from their credit report. Their primary goal is empowering consumers with the opportunity and knowledge to reach their financial dreams in 2020 and beyond.
Hire A Credit Repair Service
A reputable company like may be a viable solution if your report is riddled with inaccuracies that further complicate the repair process. can help you with the following items:
- Cleaning up credit report errors
- Disputing inaccurate negative entries
- Handling creditor negotiations
If you decide to hire a credit repair service, know that laws govern how they operate and what they can do. The establishes the following regulations governing credit repair services:
- They cannot provide false or misleading information concerning a persons credit status and identification
- They must provide a detailed description of the service
- They cannot receive payment for the performance of any service until said service has been entirely performed
- There must be a written contract detailing the services to be performed, the time frame during which these services will be performed, and the total cost for those services
- They cannot promise to remove accurate information from a credit report before the term set by law
- The consumer will have three days in which to review the contract and cancel without penalty
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Can You Still Get A Loan Even With A Bankruptcy On Your Credit Report
Many people think that just because they filed for bankruptcy, then this means that they will not be able to get a loan or a new line of credit. The truth is, there are many different companies and lenders that specialize in lending to people who just filed for bankruptcy or with bad credit.
Of course, you will find that the interest rates and the fees are high compared to when you still had a stellar credit score. Thats why its important to be cautious and to not be blinded by the unbelievable offers immediately after your bankruptcy discharge. Make sure that you read the fine print and clarify all the details before going for a loan or a credit card. You dont want to end up in a more dreadful situation than you were in pre-bankruptcy.
So, what types of loans or credit are you still eligible for even after filing for bankruptcy? We listed down the credit options for you
How Do I Find My Credit Score
You can find your credit score by visiting annualcreditreport.com and requesting free credit reports from all 3 credit bureaus or credit reporting agencies: Experian, Equifax and Transunion, or by using an app like . Knowledge is the key to improving your credit score, so checking your credit score on a regular basis and taking steps to improve it are vitally important to having a good credit score.
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How Soon Will My Credit Score Improve After Bankruptcy
You can typically work to improve your credit score over 12-18 months after bankruptcy. Most people will see some improvement after one year if they take the right steps. You can’t remove bankruptcy from your credit report unless it is there in error.
Over this 12-18 month timeframe, your FICO credit report can go from bad credit back to the fair range if you work to rebuild your credit. Achieving a good , very good , or excellent credit score will take much longer.
Many people are afraid of what bankruptcy will do to their credit score. Bankruptcy does hurt credit scores for a time, but so does accumulating debt. In fact, for many, bankruptcy is the only way they can become debt free and allow their credit score to improve. If you are ready to file for bankruptcy, contact a lawyer near you.
How Long Does A Bankruptcy Stay On My Credit Reports
Depending on the type of reportable credit event, the statutory reporting limit is either two years , seven years , or ten years . Bankruptcies are reported on consumer credit reports because they are credit-related public records. The length of time a bankruptcy remains on a credit report depends on the type of bankruptcy.
A Chapter 7, 11 or 12 bankruptcy is reportable for ten years and a Chapter 13 bankruptcy is reportable for seven years from the date of filing in bankruptcy court. Chapter 13 has a shorter reporting time than other bankruptcy types because it requires at least partial repayment of the debts the filer is attempting to have discharged. In this way, a Chapter 13 bankruptcy is treated like any other non-payment or payment delinquency, which also has a reportable timeframe of seven years.
On the expiration of the reporting period for a specific bankruptcy, the bankruptcy and all discharged accounts should be deleted automatically. An account listed for discharge in the bankruptcy, however, may be removed prior to expiration of the bankruptcys reporting period or even prior to filing the bankruptcy altogether. Since the date for removal of delinquent accounts is based on the date of delinquency, the delinquency will fall off a credit report seven years after the delinquency and will not be renewed merely based on its inclusion in the bankruptcy.
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How Long Does Chapter 13 Stay On Your Credit Report
How long is a bankruptcy on your credit report? As weve said before, Chapter 13 bankruptcy goes easier on the filer, and credit reporting outcomes are no different. Unlike the ten years associated with a Chapter 7 bankruptcy filing, a Chapter 13 bankruptcy filing is removed from your credit report seven years after filing. This is lighter treatment due to partial repayment of the debts included in the Chapter 13 bankruptcy.
Also, the individual debts are usually paid off in some portion through a court-created and court-ordered repayment plan that stretches from three to five years. Therefore, individual debts may begin to come off your credit report during those three to five years.
How Much Will Credit Score Increase After Bankruptcy Falls Off
Your credit score will increase by 50 to 150 points after a bankruptcy is removed from your credit report. The removal of bankruptcy can dramatically increase your credit score because bankruptcy is the most negative item that can appear on your credit report. The amount of points your credit score will increase depends on other items you have on your credit report.
If you have other negative items bringing down your credit score, you might not see a huge increase. But if nothing else is affecting your credit score, the removal of bankruptcy will likely result in a huge increase in your credit score.
If, after filing for bankruptcy, you open new accounts, make all of your payments on time, you should see a substantial increase in your credit score once the bankruptcy is removed from your credit report.
Many people have reported that their credit score has increased by 50 to 150 points after the bankruptcy fell of their credit report. That said, some saw a 50 point increase, others saw a 91 point increase, and others experienced a 150 point increase. So, your point increase will vary depending on the information in your credit report.
If, after filing for bankruptcy, you opened new credit cards, racked up a lot of new debt, and missed payments on your account, you will be hurting your credit score and the removal of a bankruptcy would have little to no impact on your credit score because the new derogatory information will drag your credit score down.
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Much Like Other Derogatory Marks Bankruptcy Records Will Remain On Your Credit Report For Up To Seven Years This Duration Will Begin Based On The Date They Were Filed Fortunately The Discharge Date Has No Effect On When The Information Will Fall That Is To Say It Is Possible That The Information Will Have Already Been Removed Before The Discharge
However, the type of bankruptcy does affect how long a bankruptcy record will remain part of your credit file. The two most common types of bankruptcy are Chapter 7 and Chapter 13.
Nevertheless, the Fair Credit Reporting Act sets a time frame for items to stay on consumer credit reports. As a result, bankruptcy records and other negative marks will naturally fall off of your credit report. In short, you don’t need to do anything to have a bankruptcy removed.
The Fair Credit Reporting Act
The Fair Credit Reporting Act regulates what credit bureaus can and cannot do when it comes to credit reports, and can help answer the question of how long does bankruptcy stay on your credit report.
15 U.S.C. § 1681c states that no consumer reporting agency may make any consumer report containing any of the following items of information Cases under title 11 or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.
This means that a bankruptcy cannot appear on a credit report from more than 10 years from the date of the order for relief of bankruptcy, which is usually the bankruptcy filing date. The credit bureaus are required to correct information that is inaccurate, so keeping an eye on your credit report after you declare bankruptcy can help ensure that the information is reported correctly.