How to Get Dismissed Bankruptcy Off Credit Report

A dismissed bankruptcy appearing on a credit report can present a complex challenge for consumers. Its presence on credit history can affect future opportunities. Understanding how these entries appear and how to address potential inaccuracies is an important step in managing one’s financial standing.

Understanding Dismissed Bankruptcy and Credit Reporting

A dismissed bankruptcy occurs when a bankruptcy case is terminated by the court before the debtor receives a discharge of their debts. This means the individual remains responsible for repaying financial obligations, and creditors may resume collection activities. This differs from a discharged bankruptcy, where debts are legally wiped out. Dismissals can happen for various reasons, such as failing to meet court deadlines or not paying required fees.

The Fair Credit Reporting Act (FCRA) governs how long dismissed bankruptcies can remain on a credit report. A dismissed Chapter 13 bankruptcy stays for up to seven years from the filing date. A dismissed Chapter 7 bankruptcy may remain for up to ten years. The FCRA mandates accuracy and completeness of reported information.

Identifying and Preparing to Address Credit Report Errors

The first step in addressing a dismissed bankruptcy on your credit report involves obtaining copies of your credit reports. You are entitled to a free copy annually from each of the three major credit bureaus: Experian, Equifax, and TransUnion. These reports can be accessed at AnnualCreditReport.com. You can also access these reports weekly for free.

Review each report for specific details related to the dismissed bankruptcy entry. Look for the bankruptcy filing date, dismissal date, and confirm the entry is correctly identified as “dismissed” rather than “discharged”. Check for other inaccuracies, such as misspellings, incorrect addresses, or if the entry remains beyond its permitted reporting period. Gather all necessary documentation, such as the official bankruptcy dismissal order from the court, and keep copies of all documents.

The Credit Dispute Process

Once you have identified inaccuracies and gathered supporting documentation, you can initiate a dispute with the credit bureaus. You have several options for disputing information, including online portals, certified mail, or by phone. While online disputes are often the fastest, mailing a dispute via certified mail with a return receipt provides a verifiable record. When submitting a dispute, clearly state your personal information, the specific error, the account number, and why the information is inaccurate.

Always include copies, not originals, of your supporting documents, such as the official bankruptcy dismissal order. The Fair Credit Reporting Act requires credit bureaus to investigate disputes within 30 days, extending to 45 days if additional information is provided. You can also contact the original creditor or data furnisher directly to dispute the information. The furnisher is obligated to investigate and respond within 30 days.

Follow-Up and Next Steps

After submitting your dispute, monitor its status with the credit bureaus. They are required to notify you of the investigation’s results. If the credit bureau determines the information on your report is inaccurate or incomplete, they must correct or remove it promptly. You should receive an updated copy of your credit report reflecting the changes.

Should your dispute be denied or if the inaccurate dismissed bankruptcy entry persists, several avenues remain available. You can re-dispute the item, providing any additional information or documentation that strengthens your case. Another option is to request a brief statement of dispute be added to your credit file, which will be visible to those who access your report. If the issue remains unresolved, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) or contact the Federal Trade Commission (FTC) for further assistance.