How to Remove Dismissed Bankruptcy From Credit Report

A dismissed bankruptcy occurs when a court terminates a bankruptcy case before debts are discharged. This means the individual remains responsible for their original debts, and creditors can resume collection efforts. While a dismissed bankruptcy is public record and appears on credit reports, this article focuses on addressing inaccuracies in how this information is reported.

Understanding Dismissed Bankruptcy Entries on Credit Reports

A dismissed bankruptcy means the case closed without debt discharge, leaving the filer obligated to creditors. Reasons for dismissal include incomplete paperwork, unpaid court fees, or failure to attend counseling. Credit bureaus access public records of bankruptcy filings, often through independent contractors or online databases like Public Access to Court Electronic Records (PACER). While courts do not report directly, the public nature of filings allows agencies to gather data.

The duration a dismissed bankruptcy remains on a credit report varies by type. A Chapter 7 dismissal can stay for up to 10 years from the filing date. Chapter 13 bankruptcies, dismissed or discharged, typically remain for 7 years. These reporting periods are governed by law.

An accurately reported dismissed bankruptcy cannot be removed before its statutory period expires. The focus is on disputing inaccuracies, not erasing legitimate public records. A dismissed bankruptcy can still impact a credit score, though sometimes less severely than a discharged one.

Identifying Errors on Your Credit Report

Before disputing, obtain your credit reports from Experian, Equifax, and TransUnion. The Fair Credit Reporting Act (FCRA) entitles you to a free copy from each agency annually via AnnualCreditReport.com. Obtaining all three is important, as bureaus compile data from different sources, leading to variations. Compare these reports against each other and your personal records.

Review each document, focusing on the dismissed bankruptcy entry and associated accounts. Compare credit report details with official court documents from your bankruptcy case. Look for specific inaccuracies like an incorrect filing or dismissal date. These dates determine the reporting period and influence how creditors view the event.

Another common error is misidentifying the bankruptcy chapter, such as reporting Chapter 7 instead of Chapter 13. An incorrect chapter can convey a different financial outcome than what occurred. Verify the bankruptcy case number on your credit report. An incorrect number could indicate a data entry error or that the entry belongs to someone else.

Pay close attention to individual accounts included in your bankruptcy filing. They should indicate their status as “included in bankruptcy” or similar, even if debts were not discharged. If these accounts are still reported as active, delinquent, or in collections, this is an inaccuracy that needs addressing.

Disputing Inaccurate Information

After identifying inaccuracies, formally dispute this information with each credit bureau where the error appears. The Fair Credit Reporting Act (FCRA) grants you the right to dispute any inaccurate or incomplete information on your credit report. Credit bureaus offer online dispute portals, mail, and sometimes telephone options.

Sending a dispute letter by certified mail with a return receipt is advisable, as it creates a verifiable paper trail. Your dispute letter should clearly identify the inaccurate dismissed bankruptcy entry. State the exact information you are disputing, such as an incorrect filing date, dismissal date, bankruptcy chapter, or case number. Explain why you believe the information is inaccurate and refer to any supporting documents.

Include copies of documents that substantiate your claim. This might involve official court documents from your bankruptcy case, such as the dismissal order, the bankruptcy petition with the correct filing date, or other relevant court records. Also, provide copies of personal identification, such as a driver’s license and a utility bill, to confirm your identity. Never send original documents.

Upon receiving your dispute, the credit bureau must investigate the contested information, typically within 30 days. During this investigation, the credit bureau contacts the information provider, like the court or original creditor, to verify accuracy. If the information provider cannot confirm the data’s accuracy, or if the investigation reveals it is inaccurate or unverifiable, the credit bureau must remove or correct the entry.

Following Up After a Dispute

After submitting your dispute, monitor its status with the credit bureaus. They typically complete investigations within 30 days, extending to 45 days if you provided additional information. Most credit bureaus offer online portals to track dispute progress using a reference number.

If the dispute is resolved in your favor, the inaccurate dismissed bankruptcy information will be removed or corrected. The credit bureau should send you a notice of the outcome and a free updated credit report reflecting these changes. Review this updated report to ensure all corrections are accurate.

If the dispute is denied or not corrected to your satisfaction, you have further recourse. You can appeal the credit bureau’s decision, often by providing additional supporting documentation. Alternatively, file a complaint with the Consumer Financial Protection Bureau (CFPB). You may also contact your state attorney general’s office, which often has consumer protection divisions.