How to Remove a Bankruptcy From Your Credit Report

How to Remove a Bankruptcy From Your Credit Report

If you recently became one of the more than half a million Americans who declare bankruptcy each year, chances are you are counting the days until your bankruptcy disappears from your credit report.

Depending on the kind of bankruptcy you filed, it could take up to a decade for the bankruptcy to disappear from your credit report. However, you may have heard that it’s possible to get rid of it sooner than that.

The truth is bankruptcies are tough to get rid of before their “expiration date.” That applies if the agency reported it correctly.

Bankruptcy filings are a matter of public record. The courts where you filed them maintain them. So it’s only a matter of time before they end up on your credit report.

Once one lands on your report, it’s hard to remove early (whether it’s there legitimately or not). In order to tackle the monumental feat of removing a bankruptcy from your credit report, it’s important to know how bankruptcy works, how it impacts your credit, and what to do if you’re stuck with a bankruptcy on your report for the long haul.

We researched & reviewed the best credit repair companies. They can help you dispute inaccurate items on your report & work towards improving your credit score.

How long does a bankruptcy stay on my credit report?

Chapter 7 bankruptcies stay on your report for ten years. A Chapter 13 bankruptcy will linger on your report for seven years. If you’re confused, that’s understandable.

These are two of the more well-known types of bankruptcy. Chapter 7 bankruptcies are the most common type of bankruptcy. They make up approximately 70% of cases each year. The other type is Chapter 13 bankruptcy.

You can think of Chapter 13 bankruptcy as “I’ll pay my creditors eventually, just not under the terms and conditions of the original loans.” They are typically a bit more complicated to work out than Chapter 7 bankruptcies. That is because you negotiate pay-off plans for each creditor.

A Chapter 13 bankruptcy continues for years. It involves a trustee that manages the process of repaying the creditors under the agreements of the payment plan. Chapter 13 bankruptcies remain on your credit report for seven years after filing.

Chapter 7 bankruptcies are usually easier to work out. That is because they don’t include long-term payment plans.

You can think of Chapter 7 bankruptcies as “I’ll liquidate whatever qualifying assets I have, pay you what I can, and the remaining debt will disappear.” There are some exceptions to debts that people can wipe away. Chapter 7 bankruptcies will stay on your credit report for ten years after filing.

In order to file for a Chapter 7 bankruptcy, you must be able to meet certain requirements. Those are regarding income and past history with bankruptcy.

You can find a complete guide to all the eligibility requirements, processes, and forms related to Chapter 7 and Chapter 13 bankruptcies at the USCOURTS.GOV website.

Back to Top

How does a bankruptcy impact my credit report?

A bankruptcy will affect your credit report in two ways.

  1. The first is the filing itself. There will be an actual entry on your credit report that indicates you filed for bankruptcy. The entry will include the relevant details, including the date you filed.
  2. All of the accounts included in your bankruptcy will be on your report, as well. Each account will have its own line item entry. It will appear as “included in Bankruptcy.” The accounts will remain on the report until seven years from the date of the original delinquency.

The bankruptcy stays on seven or ten years after filing. So the agency will typically remove the accounts the bankruptcy includes from your credit report first. Their delinquency dates will pretty much always precede the bankruptcy filing date.

Bankruptcies will always negatively impact your credit report. However, the severity of the impact will vary case by case. If you have several accounts included in your bankruptcy, it’s going to have a more significant impact than if you only have a single car loan or credit card.

Back to Top

What if I have a fraudulent bankruptcy on my report?

Public court records are always accessible via the Public Access to Court Electronic Records (PACER) system. If you have a fraudulent bankruptcy on your record, due to identity theft or perhaps a clerical error, it shouldn’t be hard to track down.

If you do happen to find a bogus bankruptcy on your report, you need to challenge it with each of the credit bureaus. This can be done with a dispute letter. The letter will need to include a statement from the court of record.

You will have to contact the court and ask them for a written statement that verifies you did not have a bankruptcy on file. If the court does have a bankruptcy on file, you will need to work with them to resolve the issue.

You may need to provide identification and other records. That way you can prove there was some kind of mix-up.

First, get everything you need from the court. Then send it with copies of your identification and of course your dispute letter via certified mail to each of the major credit bureaus.

It will usually take a few weeks for them to record the changes on your credit reports. That applies as long as everything you sent checks out.

This is obviously a lot of work, and it may seem a bit overwhelming. You may feel like it’s too much to handle with everything else going on in your life.

In that case, you may want to procure the services of a quality credit repair company. You could also hire a good bankruptcy attorney.

Granted, it’s never a good feeling when you pay out of pocket to fix something that wasn’t your fault. Taking it on by yourself can be a big challenge, though. It will cost you in terms of time and money.

Someday, fraud and cybercrime might be a thing of the past. But, for now it’s a part of life that many of us have to deal with at one time or another.

Back to Top

Can I quickly remove a legitimate Chapter 7 or 13 bankruptcy from my credit report?

You can, but you’ll need to find an error or inconsistency in the bankruptcy listing on your report in order to file for removal.

The main thing to remember is that you always have the right to challenge anything that the credit bureaus are reporting. If you can find anything that’s not correct, then seize on it as an opportunity. Send a dispute letter and ask them to correct the mistake and remove the bankruptcy.

If you can’t find any inaccuracies, you might try sending them a dispute letter anyway. Ask them to verify how the bankruptcy came to be on the report. They will likely respond that they received the information from the court, and provide the relevant information.

You can then follow the same process with the court. The hope is that one of these steps will expose some kind of problem or technicality that occurred during the process and will ultimately be grounds for removal.

I’m a firm believer in the notion that nothing is impossible. It may be highly unlikely that you’ll be able to remove a legitimate bankruptcy from your credit report early, but that doesn’t mean it isn’t worth trying.

It’s definitely a long shot. However, many people who have taken the time to go through the process have had success with removing a Chapter 7 from their credit report before the 10 years were up (or 7 in the case of a Chapter 13).

If you’re looking at 7-10 years with tainted or bad credit anyway, why not give it shot? It’s not a bad idea to consult with a bankruptcy attorney or credit repair company. They can help you assess your situation. You can get their opinion on what your chances might be.

Back to Top

What happens after bankruptcy?

It’s almost certainly going to be hard to get any kind of loan or credit once you have a bankruptcy on your record. However, here are some things you can do in order to start the process of rebuilding your credit.

It won’t happen overnight. Therefore, it’s important to understand that it’s going to take time. There is an old riddle you may have heard: “How do you eat an elephant? One bite at a time.”

A secured loan is a good place to start the process. Most local banks and credit unions will work with you to lend you money that’s secured by a deposit into a savings account. They’ll help you out by reporting your timely payments to the credit bureaus.

It’s a low risk proposition for them. That is because it’s secured with funds you provided. They would love to keep your business for years after your credit has been restored. You may then be ready to apply for a car loan or a mortgage.

Another option that can help is a secured credit card. That is a special type of credit card that is also backed by a deposit that you pay upfront. The credit limit on a secured card is usually (but not always) equal to the amount of the deposit you paid.

A secured card often has annual fees and may carry high interest rates, but you shouldn’t need it for the long term. You can use it to mend your credit until you become eligible for a better, unsecured card. Again, you should make sure they report to all three credit bureaus because you want to make sure they reward you for your good behavior.

Regardless of the route you choose, keep in mind that some of the most successful people in history went through bankruptcy before hitting their stride later in life. It doesn’t have to be the end of anything but a single chapter in your life. Even better, think of it as the beginning of your next chapter.

Rick Miller

About Rick Miller

Rick is a former US Army Aviator, West Point graduate, and Darden MBA. He owns and operates a successful Real Estate Investment firm, and he enjoys spending time with his wife and three children in Hartford, CT.

Back to Top

56 thoughts on “How to Remove a Bankruptcy From Your Credit Report

  1. I filed a chapter 7 in 2015 and was discharged 2/2015 being 5 years now. I just got an update from TransUnion saying a credit card I had updated something to the Chapter 7. That card was not apart of the bankruptcy. How can something be updated to the bankruptcy that was discharged. It says update to account information.

    1. From what I have learned about filing a B/K and having any credit cards, is that when you file a B/K all credit cards will be included. I filed a B/K in the past and I wanted to keep my hkme, car and two credit cards. Fortunately, I was able to keep my home and car by reaffirming them, but all my credit cards had to be included. I even called the bank, in the two cards I wanted to keel,and they said that they had to be included. I’m not sure when you got the credit card your speaking of, but if it was after your B/K, the.you sbou!d have not issues with contacting the bank of the credit card to get this corrected. Lastly, if this credit card, your speaking of, is still open (I mean you use and pay on it monthly) then you would need to contact the bank of the card. I only say this because if you contact the credit bureau and they correct it on your credit report, it is likely to show back up the following month, due to it being on the banks tape where they continue to report the same thing g u too they correct it in there end. I know I have you much information on the message, but I do hope it helps to answer your question. Extra good luck and I hope the best outcome for you!!!!

  2. It’s good to know that chapter 13 continues for years after you’ve filed it because that will help me plan. My husband and I need to file for bankruptcy and we need all the information we can get. Is there a way to get it off your credit score faster?

    1. There is one trick I learned, and to be honest, as if this month (February), I am waiting to see if it works. Here is what I learned and why it maybe used: When you file your B/K, on the very first page towards the bottom, it will want you to writing in on o e of two lines. One line is for personal and it will ask for your social security number, while the other is usually business related and it ask for a FEIN number. Even though your using/filling in the personal line, don’t use your social security. If you read the line carefully, it states you can use any number like an account t number. (This list is to identify you). So, what acct number do you use? Well you can make it up. Use any random letters and/or numbers of a mixture of both, but to make it easy, just use numbers.
      Here is the why: Because this is the first page of the B/K, it is what’s filed with public records. So, this is what’s used/seen by the credit bureau when they investigate the dispute you’ll file with them after the B/K. So,if your name of social security number are not shown there, then the only other way they can see your personal information,in the B/K you fiked, is to pay someone to actually drive down to the courthouse to review all the other documents in your B/K. So the two issues here for the credit bureau is time and money. Remember they only 30 days to get the information or remove it from your credit report and we both know that they are not going to pay someone to go to the courthouse just to look at your B/K.
      Remember, I am still waiting to see if this actually works. I filed my B/K December of 2018 and I appeared on my credit report right after it discharged. I finally contacted all three credit bureau’s to disputed it, and now I am just in that 30 days waiting period.to see what happens. I am sorry I could not tell you if they will come off my credit report, today, but I can post what happens when I learn more information. I do hope this helps and also that it works lol. Good luck with you upcoming war against the credit bureau giants!

  3. On October 2010 I filed chapter 7. Next October it will be 10 years so I was wondering is it possible or worth it to try having chapter 7 bankruptcy remove or just wait?

    1. I filed a Chapter 7 in February 2011 which will come off February 2020…about 6 months ago I started cleaning up my credit and asked all 3 credit reporting agencies please remove some old address and phone numbers and disputed the Bankruptcy..TransUnion and Experian deleted the bankruptcy but equifax and their cast of idiots have refused and I’m still fighting them. You can also file a complaint online at the Consumer Financial Protection Bureau online. I must have 40 complaints on all of them but have found that you also need to send Certified letters to them so they have to sign for and the 30-day window starts ticking for their investigation. If you send regular mail it will go in the pile. Also, make sure when mailing a complain to include a copy of your drivers’ license and a utility bill or credit card bill showing your address…The credit companies are there to DELAY, write canned responses and keep your score low so you have to pay more interest. I could go on and on…but this will get you started.

      1. Hello I am trying to do the same thing. Did you dispute the bankruptcy because of the old addresses and phone numbers? If so, how did you go about doing this? I only have until the end of this year for my bankruptcy to be removed and I am trying to buy a house. Please help me and tell me what direction to go. Thank you

      2. Steve… What address did you use for sending certified letters (to be signed), because I only can find P. o. Boxes, and no one can sign for those. So, what address did you use for each company?

  4. Back in 2013 my now ex-husband thought it would be good to file for chapter 13 bankruptcy so we saw a lawyer once filed and that it was it never went to court no nothing it was dropped/dismissed but it’s on my credit how can I get it removed

    1. Carrie, Unfortunately dismissed is bad if not worse to have on your report. You can delete it. You can write to the bureaus and in your own words about the reporting of it. There is alot of mis-information about freezing this and that and deleting addresses. You do not need to do. It is not easy but it can be deleted.

  5. I filed bankruptcy in August 2018 and it was discharged in March 2019. Our mortgage was NOT included in the bankruptcy however, it was last reported on my credit report in October 2018. On my credit report (October 2018) it states that we are current, still paying on time but in the notes it states Chapter 7 Bankruptcy. I contacted the credit bureaus, they did an investigation and they said they would not change the report because the mortgage wasn’t reaffirmed with the mortgage company.

    My bankruptcy attorney never mentioned anything about having to reaffirm the mortgage. If I do not reaffirm the mortgage the mortgage will not show up on future credit reports. BUT if I don’t continue to make the payments they can/will come after me because my name is still on the mortgage. In order to reaffirm the mortgage I would have to reopen the bankruptcy case.

    Is this enough of a reason to be able to get my bankruptcy removed?

    1. I believe that they may be violating the fcra 11U.S.C. 524(C),(f). If an attorney goes in front of a judge with a reaffirmation agreement for a mortgage the judge would probably think he is nuts. It’s up to the bank if they do a reaffirmation agreement with you, if they offer one your bk attorney would of had you sign it. And they were notified about ur bk. Check your contract also theres way to have them take the negative remarks off your reports. Good luck

  6. I filed for Chapter 7 bankruptcy in August 2018. It was discharged in March 2019. I only filed on 2 credit cards that were in my name. My husband did not file for bankruptcy, only myself. Both my husband and I are on the mortgage and we were able to keep our home. My credit score only dropped about 20 points and is currently at 728. My husband’s credit score is about 760.

    We are thinking of selling our home and buying a new one. Is it better to try to get unsecured credit cards or secured ones to build my credit even higher? Is there any point in TRYING to get my bankruptcy removed so soon after it being discharged? I would like to be on the new mortgage but I think my bankruptcy will stop us from getting a low percentage rate on the new mortgage.

    1. Talk to a lender before you list your home for sale. FHA and Conventional Loans have rules on bankruptcy. You will have to wait 2-3 years depending on the loan.

  7. It has been almost 10 years this coming October. If I try and file now to get it completely removed, will it still show during a credit search?

    1. It expires 7-10 years publically, the bureaus can only be allowed to report information if it’s public. Make them remove it anywhere its found. That’s law so there should be no guessing, just work.

  8. I filed chapter 7 as of June 26, 2014. It’s been almost 5 years on my credit, is this worth trying to dispute or just leave it alone since I have two more years to go?

    1. Yes, dispute. It’s work but it can possibly be removed. Chapter 7 is on your credit for 10 YEARS. So it doesn’t hurt to try. Sky blue credit company got mine removed from Equifax. Still trying to get it removed from experian and transunion though.

  9. I filed bankruptcy due to severe medical conditions. Finally in April or March 2015 I was put on SSDI due to the fact of having a rare tumor inside my heart. Then 4 months later finding out I had double lung cancer. 2 years go by and I come to stage 4 colon cancer, then after that almost died because of my gallbladder. I have COPD, on several medications and experience ocular migraines on a regular basis, extreme pain from scar tissues, full blown osteroproseious, a torn rotator cuff and two torn meniscus. What can I do to get that off? Please advise.

    1. Hello Karen, I’m not affiliated with any credit repair. I saw your story, I hope you find a resolution.

      One thing I’ve learned, is that the costs can be expensive with no guarantee of removing Chapter 7. Be careful. God bless and comfort you.

      Pat

    1. Can you tell me and everyone else that is asking, how you did it? I am trying to buy a house and this will definitely have a huge impact on my purchase. Thank you

    2. I deleted mine after about a year of my BK. It is not easy and it can be done. TIP: there is no law that the BK has to be on your report.

  10. Filed chapter 13 in 2010 and converted to chapter 7 in 2012. It’s now 2019, one month after seven years of chapter 7 filing. Is that bankruptcy eligible for discharge at this time?

    1. If you have successfully completed the ch7 and got your 341 form and it says discharged, then it discharged. If the credit bureaus do not reflect this, then you need to dispute the bureaus for inaccurate reporting. Go to the court and ask for your 341 or the status of the bankruptcy.

    2. Rich, Chap 7 is 10 years. But you converted so how does that change the time frame for discharge? 2012 + 10 = 2022. ??? But you can delete it sooner.

  11. Very informative article! Thank you for sharing all that information and clearing up a few things. I wasn’t aware chapter 7 was 10 years… It’s been 7 years since my chapter 7. Would I write the credit bureaus simply requesting they remove it? Or do I need to comb through it for an innacuracy? If so what are some common ones I should look for that have had a good success rate?

    Thank you again

    1. I used sky blue credit. They are a little cheaper than the rest but they do a fantastic job. They even got bankruptcy removed from Equifax. I’m still trying to get it off experian and transunion though. It’s a process.

    2. Yes are you in Lexington Law they got chapter 13 off of my Equifax and my Trans Union and they’re still working on my experience

  12. I filed Chapter 7 to stop a wage garnishment on a debt that I couldn’t afford to pay. I backed out when they charged off the debt, and the bankruptcy was dismissed. Since the bankruptcy was dismissed, can I have it removed from my credit report?

    1. Unfortunately, I did the same thing and the DISMISSED one stayed on my report for 7 years and then disappeared last year. It sucked!

  13. I filed bankruptcy last April 2018, it was granted in August 2018. One of the credit cards closed back then but not reported to my credit until this February 2019, causing my score to drop again. Can I dispute that?

    Also, why is my Fico 40 points lower than what is on Credit Karma and other credit sites?

      1. Credit karma scores use vantage score and FICO uses their own model. Some banks and credit card companies use the vantage score system and many use FICO. It’s all about cost.

  14. I filed two years ago and backed out at the bankruptcy court. But it still appears on my credit report two times with each credit bureau. Also my credit cards I had are now charge offs. 😳

    1. These can be removed in most cases, but not using the typical “dispute letters.” Professional assistance will be needed. Also, if the charge-offs have resulted in 3rd party collection agencies contacting you for payment, these too, will be going onto your credit report as well. This can be dealt with effectively as well but you have to use the right company.

      1. I filed a chapter 13 a few years ago and backed out because of financial issues. Is there a way to get the bankruptcy off my credit report?

  15. I’m trying to find out if a chapter 13 is dismissed immediately after filing is that grounds for having it removed from your credit report? Thank you.

  16. Hello Christine,

    I am no expert, but by experience I know that you can send a letter to the credit bureaus and state that is has been more than ten years and for the bankruptcy to be removed from your report.

    Good luck.

  17. It’s been more than 10 yrs since my husband and I filed a chapter 7 bankruptcy, and I feel that it’s time for this to be taken off our credit reports.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.