Credit Companies

How to Eliminate a Bankruptcy from Your Credit Report?

Quick Answer:

To eliminate a bankruptcy claim, you will need to provide evidence to prove the bankruptcy was addressed inaccurately. If not, it will stay on your credit report for seven to ten years, depending upon its type.

Aside from the burden and the drawback of a bankruptcy mark, it can have a severe and a long-lasting effect on your credit report and score. Following are some questions we ask when looking to eliminate a bankruptcy from your credit report to maintain your credit score and steer clear of any mishaps.

1.     How long does a bankruptcy stay on my credit report?

2.     How does bankruptcy affect my credit score?

3.     Can I rebuild my credit after bankruptcy?

4.     Can a bankruptcy come off my credit report early?

5.     Can I remove a bankruptcy from my credit report on my own?

 

How Long Does a Bankruptcy Remain On My Credit Report?

There are differing time limits on bankruptcies like the Chapter 7 and Chapter 13 bankruptcy. According to the Fair Credit Reporting Act (FCRA), a chapter 7 bankruptcy can remain on your credit for seven years after filing and a chapter 13 bankruptcy can stay on your credit for ten.

The FCRA declares that only the legal maximum amount of time bankruptcies can be noted on your reported, rather than the minimum amount. Meaning that a bankruptcy can be eliminated before the maximum amount, but you must provide evidence as to when and how it was misreported. A bankruptcy cannot be eliminated just because you no longer wish to have it on your report.

How Does Bankruptcy Impact My Credit Score?

The effect of bankruptcy on your credit score depends on the credit score before it was reported.

According to FICO’s Published Damage Points guidelines, the effects vary from 130 to a 240 point decrease. 

If your credit score was high before filing the bankruptcy, it will promptly decrease to the poor category. if you start with a good score, you will most likely end up with an inadequate score, but it will not shoot down too far.

The resulting score is still terrible because your score is bad and you will find it difficult to get approved for credit applications. The lower the score you start with, the less it drops.

Can I Rebuild Credit After Bankruptcy?

You can rebuild your credit after bankruptcy. However, it a long process and limits your initial actions. If you constantly pursue the rebuild of your credit, your report and score can enhance. Following are some steps you can take:

·        Understand the reason: Analyze, acknowledge and learn the causes of your bankruptcy so that you will not fall victim to the same in the future.

·        Abide to a budget:  Review your finances and see where you can save your money.

·        Begin to structure a credit history: This does not mean that you create a new identity (as advised by some unethical credit repair companies). It defines that you rectify whatever credit you are left with.

This can mean adjusting for a severely high-interest rate, taking on a co-signer, putting cash into a secure credit card, or other choices that are designated to help you rebuild or enhance your credit report.

Utilize these options carefully, and ensure that you never put more than you can pay on a card to help improve your credit.

Can a Bankruptcy Be Removed Early?

The FCRA has made it possible for you to dispute anything on your credit report. When it comes to bankruptcies, due to the fact that they stay on your report for a long time, it is not unusual for errors to sneak in. some common errors include:

·        Debts that were discharged but are still showing some balance.

·        Individual accounts included in the bankruptcy still showing up on the credit report after the appointed seven years. In Chapter 7 and Chapter 13 bankruptcies, these can affect your credit for seven years beginning from the original delinquency date, not the filing date of the bankruptcy in which they were discharged.

·        The bankruptcy showing up on the report after ten years from the filing date.

·        Any type of material error in how the bankruptcy was reported.

If you notice any of these errors on your credit report, you are given the right to dispute these errors. The reporting bureau must have them eliminated if evidence proving those errors is not provided.

There are certain circumstances in which the bankruptcy is not your responsibility. This means that the causes can be clerical errors, mistaken identities, or identity theft.

If you notice an error, the first thing you must do is communicate with the United States Rustee’s Office to file a report. From there, the case is generally sent off to the FBI and then reopened. You may need to defend your claim in court to prove that the bankruptcy is false.

While the government is usually on the favor of those trying to remove a bankruptcy, the legal proceedings for eliminating it can be a long one. You will need the aid of a trusted advocate.

Can I Remove a Bankruptcy from My Credit Report by Myself?

It is viable that you remove the bankruptcy from your report and many have succeeded in doing so. However, it is stagnant and labor-intensive which many people find tangling and confusing.

It is encouraged that you gather a sufficient knowledge about credit report actions and the way they work. Make sure you count the real cost of DIY credit repair before you embark on a journey of doing it by yourself.

If you decided to take the aid of a credit repair organization, we recommend Blackwater Credit Repair where we offer credit repair services to help you in the disputing and the clearing up of your credit report.

Contact us today so you can get a free customized credit report consultation to see how we can aid you in meeting your credit goals.