How to Remove Bankruptcy from Your Credit Report
July 7th, 2009, Written By: Kerri Randall
If you’ve had to file for bankruptcy, you know the detrimental effect it has had on your credit score. Even if it is a recent development for you, you’re probably already wondering how you can have it removed from your credit report.
Bankruptcy Can Be Reported for 10 Years
You should know that most negative activity can remain on your report for 7 years, but bankruptcy can be reported for 10 years. Don’t fall for potential scams that insist they can have it removed earlier. These credit agencies are likely going the route of disputing the bankruptcy, claiming that the credit bureau needs to prove it. Well, if you really did file bankruptcy, that’s all the proof that is needed. It’s true that you can dispute information on your credit report, and that if the dispute is not responded to within 30 days, the bureau must remove it. But if the information is true, no matter how negative, it will not be removed until the necessary time has passed.
Bankruptcy is Removed Automatically
There’s nothing you need to do in order to remove bankruptcy from your credit report. It is automatically programmed to disappear after 10 years. However, if you reach that point and notice that it is still being reported, then you can contact the bureau and file a dispute to have it removed, and you’ll be likely to win at this point.
Close Accounts Related to Your Bankruptcy
Some of the accounts that were related to your bankruptcy may still be reported, and you can (and should) file a dispute to remove them if you know they have been closed or otherwise resolved. Especially once the bankruptcy has run its course, you want to remove any and all other evidence of it. Your credit score depends upon a positive history, and as long as you’ve improved your financial habits since filing bankruptcy, your score can go back up again. But letting those old accounts remain on your credit report is only pulling you down, so be sure to get rid of them.
Bankruptcy is an extremely negative option for resolving debt, but unfortunately, sometimes it becomes the only way out. It will take time, but remember that it is possible to come out of this event on the positive side. Make sure you pay your bills on time and, when possible, in full. Don’t push the edge of your credit limits (especially since you’re probably paying very high interest rates for the time being). Make a conscious effort to fix your habits, and you’ll fix your credit score, slowly but surely.
Categories: Establish and Rebuild Credit
