Nobody will pretend that bankruptcy isn’t a major setback. It can be an extremely difficult time and is usually a change for the worse. It doesn’t have to hold you back long term, however. Many people think that they will not be able to access credit ever again, but this is a myth. We will explain how to remove bankruptcy from your credit report, allowing you to move on with your life and start afresh.
When you are made bankrupt, it will appear on your credit reports. When you approach lenders like mortgage providers, credit card companies and car dealers to buy on credit, they will look up your credit history using Experian, Equifax or TransUnion. They will see your bankruptcy filing. This raises a red flag for them. In most cases, they will be reluctant to give you credit or offer it at very high-interest rates. It is in your interest to have a bankruptcy filing removed from your credit report.
When it can be removed
According to Chapter 7 of the United States Bankruptcy Code, bankruptcy must be removed from your file after a period of 10 years. Yes, it is a long time to wait, but it does mean that you will be able to borrow again and your credit rating can return to normal levels. Think of it as starting a new chapter, we offer a free do it yourself credit repair kit to help you move forward.
How To Remove It Quicker
There is another type of bankruptcy filing that allows individuals to have the bankruptcy removed from credit reports after 7 years. If you filed for bankruptcy under Chapter 13 of the United States Bankruptcy Code, this is applicable. Bear in mind that the conditions of Chapter 13 bankruptcy require the debtor to repay creditors, usually over a 3-5 year period. Be aware that there is no guarantee that the credit agencies will remove it, as they are not legally required to do so. In practice, however, they do tend to remove bankruptcies when asked.
If your Credit Report Erroneously Contains Bankruptcy
Every now and again, mistakes happen. Whether it is a clerical error on the part of credit agencies or the result of fraud, your credit report may be mistakenly be labeled as bankrupt. As soon as you become aware of it, tell the credit agency and ask to have it removed. It can be alarming when you find an erroneous bankruptcy filing but don’t worry, credit agencies will remove it.
Vacate the Bankruptcy Case
If you filed for bankruptcy then managed to arrange terms with your creditors, the bankruptcy process is no longer necessary. For example, if you face foreclosure and file for bankruptcy and then you find a way to pay back your creditors, you can vacate the bankruptcy case. You can petition the court to remove bankruptcy from your file.
Legitimate Cases Cannot Be Removed
Be aware that if bankruptcy is legitimate, it cannot be removed until 10 years have passed, or in the case of Chapter 13, 7 years. There is no way around this. There are, however, ways to improve your credit report, despite it containing a bankruptcy filing. It is possible to buy on credit at reasonable interest rates if you commit to improving your credit.