How to Remove Chapter 13 From Credit Report

A Chapter 13 bankruptcy filing can significantly impact an individual’s financial standing, and its appearance on a credit report often raises concerns. This type of bankruptcy involves a repayment plan over several years, distinguishing it from a Chapter 7 liquidation. Understanding how Chapter 13 is reflected on credit reports is important for managing financial information effectively. This article clarifies how these entries appear and the specific circumstances under which their presence can be addressed or corrected.

How Chapter 13 Appears on Credit Reports

A Chapter 13 bankruptcy is a matter of public record, meaning information about the filing becomes accessible to the public and is reported to credit bureaus. Credit reporting agencies, such as Experian, Equifax, and TransUnion, include this information in a designated public records section of a credit report. This entry notes the type of bankruptcy, the court where it was filed, and the date of filing.

The standard reporting period for a Chapter 13 bankruptcy on a credit report is seven years. This period begins from the date the bankruptcy case is discharged or dismissed. If dismissed without a discharge, the seven-year period still applies from the dismissal date.

Beyond the public record entry, individual accounts included in the bankruptcy are updated to reflect their status. For example, a credit card account discharged in bankruptcy should show a “discharged in bankruptcy” or “included in bankruptcy” status with a zero balance. Accounts not included, such as certain student loans or secured debts where payments continued, may retain their original status.

Identifying Inaccuracies in Chapter 13 Reporting

Before attempting to remove a Chapter 13 entry, identify any inaccuracies reported on your credit file. Consumers are entitled to a free copy of their credit report from each of the three major credit bureaus annually through AnnualCreditReport.com. Obtaining these reports allows for a thorough review of all bankruptcy-related entries.

When examining your credit reports, look for errors related to the Chapter 13 entry itself. This includes incorrect filing, discharge, or dismissal dates. An incorrect case number or court information also represents a factual inaccuracy that can be disputed. If the Chapter 13 is listed for longer than the statutory seven-year period from the discharge or dismissal date, this is an error requiring correction.

Beyond the main bankruptcy entry, scrutinize individual accounts that were part of the bankruptcy filing. Accounts included in the bankruptcy should reflect a “discharged in bankruptcy” or similar status and show a zero balance. Any accounts still showing an active balance or an incorrect status post-bankruptcy represent reporting errors. Check for duplicate Chapter 13 entries, where the same bankruptcy case is listed multiple times. Having supporting documentation, such as official bankruptcy discharge papers or court records, is important to substantiate any identified inaccuracies during the dispute process.

The Process for Disputing Inaccurate Entries

Once inaccuracies are identified and supporting documentation is gathered, initiate a dispute with the credit reporting agencies. Disputes can be submitted online through the credit bureau’s website, by mail, or by phone. Each of the three major credit bureaus has a dedicated process for consumers to report incorrect information.

When drafting a dispute letter or completing an online dispute form, clearly identify the inaccurate Chapter 13 entry or associated accounts. State precisely why the information is incorrect and reference the specific errors found, such as wrong dates or statuses. Attach copies of all supporting documentation, including court documents, discharge papers, or any other records that prove the inaccuracy. Retain copies of everything sent for your records.

Consumers also have the option to dispute inaccurate information directly with the creditor or furnisher reporting the data. Sending a dispute letter to the original creditor can resolve issues more quickly, especially if the error originated from their reporting. Both credit bureaus and furnishers of information have obligations under federal law to investigate disputes.

Credit bureaus typically have 30 days to investigate a dispute from the date they receive it, though this period can extend to 45 days if additional information is provided during the investigation. Following their investigation, the credit bureau will notify you of the outcome, which could include the correction or removal of inaccurate information, or a verification that the information is accurate. If the information is found to be inaccurate, its removal from your credit report will follow.