Can You Get a Bankruptcy Removed From Your Credit Report?

Bankruptcy filings can significantly affect an individual’s financial standing. While a bankruptcy filing is a matter of public record and typically remains on a credit report for a specific period, there are particular circumstances where inaccuracies in reporting can be addressed. Understanding the standard reporting periods and identifying errors are important first steps for consumers reviewing their financial records.

Standard Reporting Period for Bankruptcy

The duration a bankruptcy remains on a credit report depends primarily on the type of bankruptcy filed. For individuals who file Chapter 7 bankruptcy, which often involves the liquidation of certain assets to repay debts, the record typically stays on a credit report for up to 10 years from the original filing date. This type of bankruptcy can significantly impact credit scores due to the discharge of most debts.

Chapter 13 bankruptcy, in contrast, involves a court-approved repayment plan for a portion of the debt over a period, usually three to five years. This type of bankruptcy is generally removed from a credit report after seven years from the filing date. The Fair Credit Reporting Act (FCRA) governs how long negative information, including bankruptcies, can be reported by consumer reporting agencies.

For accurately reported bankruptcy filings, credit bureaus are legally permitted to include this information on credit reports for these specified durations. Once the relevant seven or ten-year period expires, the bankruptcy entry should be automatically removed from the credit report.

These timeframes apply to correctly filed and reported bankruptcies. There is no provision under the law to have an accurate bankruptcy filing removed from a credit report before its standard reporting period concludes.

Identifying Inaccurate Bankruptcy Entries

While accurate bankruptcy information remains on a credit report for a set period, consumers should carefully review their reports for potential inaccuracies that could warrant correction or removal. Such errors can include a bankruptcy listed that was never actually filed by the consumer, which might indicate identity theft. An incorrect filing date or the wrong chapter of bankruptcy being reported are also common discrepancies that can negatively impact a credit profile.

Common inaccuracies include:

• Discharged debts that still appear active, delinquent, or with an outstanding balance. All accounts discharged in bankruptcy should be clearly noted as “discharged in bankruptcy” with a zero balance.
• Duplicate bankruptcy entries or accounts appearing multiple times.
• Inaccurate personal information, such as misspellings of names or incorrect addresses.
• Accounts not part of the bankruptcy incorrectly marked as “included in bankruptcy.”

To identify errors, consumers can obtain free copies of their credit reports from the three major credit bureaus: Equifax, Experian, and TransUnion. Federal law allows consumers to receive one free copy of their credit report every 12 months from each bureau through AnnualCreditReport.com. Many services now allow weekly access to these reports.

When reviewing these reports, it is advisable to check all three, as information may vary between them. Consumers should carefully scrutinize every section, including personal details, public records, and individual account statuses, to pinpoint any information related to bankruptcy that appears incorrect or inconsistent. Gathering any supporting documents, such as bankruptcy discharge papers or court records, that contradict the credit report information is a crucial step in preparing for a dispute.

The Process for Disputing Credit Report Inaccuracies

After identifying inaccuracies related to a bankruptcy entry, the next step involves formally disputing these errors with the credit bureaus. This process begins by preparing a detailed dispute letter to each credit bureau reporting the incorrect information. The letter should clearly state the consumer’s personal details, including full name and address, and identify each specific inaccuracy. It is important to include the account numbers and explain precisely why the reported information is believed to be wrong.

Supporting documentation is a key part of the dispute. This may include copies of bankruptcy discharge papers, court records, proof of identity (like a driver’s license), and a recent utility bill to verify address. Providing copies, rather than original documents, is recommended, and keeping a copy of everything sent for personal records is essential.

Disputes can typically be submitted online through the credit bureaus’ respective websites or by mail. Online submissions can be faster, but sending the dispute via certified mail with a return receipt requested provides proof of delivery. The major credit bureaus—Equifax, Experian, and TransUnion—have specific addresses and online portals for submitting disputes. It is advisable to dispute the error with each bureau that shows it, as information may vary.

Upon receiving a dispute, credit bureaus are generally required by the Fair Credit Reporting Act (FCRA) to investigate the claim within 30 days. The period can extend to 45 days if additional information is provided during the initial 30-day investigation. The credit bureau will forward the dispute and supporting evidence to the original creditor or information furnisher for verification.

If the information cannot be verified or is found to be inaccurate, the credit bureau must correct or remove it. Consumers will receive written notification of the investigation’s results. If the dispute is successful, the consumer is entitled to a free updated copy of their credit report.