How to Remove Bankruptcies From Your Credit Report

A bankruptcy filing can appear on a credit report and influence financial opportunities. While accurately reported bankruptcies remain for a set period, inaccurate entries can be corrected. This article explains how bankruptcy information is reported and outlines steps to identify and dispute inaccuracies on your credit report.

How Bankruptcies Appear on Your Credit Report

Bankruptcy filings are recorded as public records on credit reports and typically impact the credit profile for a specified duration. The Fair Credit Reporting Act (FCRA), a federal law, dictates the maximum time certain information, including bankruptcies, can remain on a consumer’s credit report. This framework ensures consistency in reporting across the three major credit bureaus: Equifax, Experian, and TransUnion.

The type of bankruptcy filed determines its reporting duration. A Chapter 7 bankruptcy, or liquidation bankruptcy, can remain on a credit report for up to 10 years from the filing date. A Chapter 13 bankruptcy, which involves a debt repayment plan, typically stays on a credit report for seven years from its filing date. Accurate bankruptcy entries cannot be prematurely removed.

Beyond the bankruptcy public record itself, individual accounts included in the bankruptcy may also show a specific status, such as “discharged in bankruptcy” or “included in bankruptcy.” While the bankruptcy record remains for its statutory period, the negative impact on a credit score can gradually diminish over time, especially if positive credit habits are established post-bankruptcy. Bankruptcy courts do not directly report information to credit bureaus; instead, credit bureaus collect this information from public records.

Identifying and Disputing Inaccurate Bankruptcy Information

Accurate bankruptcy filings remain on credit reports for the legally mandated period; however, errors in reporting can occur and should be addressed. The first step in identifying inaccuracies involves obtaining a copy of your credit report from each of the three nationwide credit bureaus. Consumers are entitled to a free copy of their credit report from each bureau annually through AnnualCreditReport.com. A thorough review of these reports is necessary to spot any discrepancies related to a bankruptcy entry.

Common inaccuracies on credit reports after a bankruptcy include:
Incorrect bankruptcy information, such as the wrong chapter filed, filing date, or discharge date.
Discharged accounts showing an outstanding balance, delinquent status, or charge-off instead of “discharged in bankruptcy” with a zero balance.
Accounts not included in bankruptcy incorrectly marked as such, or duplicate debt entries.
Errors in personal details like names, Social Security numbers, or addresses.
A bankruptcy appearing due to similar identity or identity theft.
A bankruptcy listed past its legally defined reporting period.

Once inaccuracies are identified, gathering supporting documentation is crucial. This evidence may include:
Official court documents, such as the bankruptcy petition, order of discharge, and bankruptcy schedules listing all included debts.
Proof of identity and current address, like a valid driver’s license or recent utility bills.
Bank statements or letters from creditors confirming account status, if the dispute involves a discharged account.
A police report or Federal Trade Commission (FTC) Identity Theft Report for suspected identity theft.
When preparing to dispute, clearly identify the item by its account number, state the reason, and provide correct information with copies of all supporting documents.

The Credit Dispute Process

With all necessary documentation prepared, the next step involves formally submitting the dispute to the relevant credit bureaus. Each of the three major credit bureaus—Equifax, Experian, and TransUnion—provides multiple methods for initiating a dispute, including online portals, mail, and sometimes phone. While online submission can be convenient, sending a dispute via certified mail with a return receipt requested is often recommended, as it provides a verifiable record of submission.

When submitting a dispute, include a clear, concise letter detailing the specific inaccuracies found on the credit report, referencing the prepared supporting documents. Copies of all gathered evidence should be attached, rather than original documents. Upon successful submission, consumers typically receive a confirmation code or receipt, which can be used to track the dispute’s progress.

Following submission, the credit bureau is generally required by the FCRA to investigate the disputed information within 30 days. This investigation often involves the credit bureau contacting the entity that furnished the disputed information to verify its accuracy. The investigation period can extend to 45 days if additional information is submitted during the initial 30-day window or if the dispute was initiated after obtaining a free credit report through AnnualCreditReport.com. After the investigation concludes, the credit bureau will notify the consumer of the outcome, which may result in the correction or deletion of the inaccurate information. If the dispute is unsuccessful and the information is verified as accurate, consumers typically have the right to add a brief statement to their credit report, explaining their perspective on the disputed item. Maintaining a comprehensive record of all communications and documents throughout this process is important.