How to Remove a Bankruptcy from Your Credit Report

Bankruptcy might be the last thing you ever thought would happen to you, but if you’ve been through this process, you know how difficult and drawn out it can be. Long after your debts have been discharged and even after your finances are once again under control, bankruptcy can linger, having a major impact on your ability to obtain credit. The two most commonly used options when it comes to bankruptcy are filing for liquidation bankruptcy (Chapter 7) or reorganization bankruptcy (chapter 13). With Chapter 7 bankruptcy, the court will order that your debts be discharged. Chapter 13 bankruptcy, on the other hand, allows you to make arrangements for repaying your debts. With either type of bankruptcy and in most cases, creditors are not allowed to make further attempts to collect debt from you. You are protected by the Fair Credit Reporting Act (FCRA) when it comes to accuracy on your credit report. A zero balance will show for any debt that was discharged as a result of bankruptcy, as well as the name of the creditor and any records of payment history on accounts, and the rest of your credit history prior to the bankruptcy. This means that even though your debts no longer exist, your negative credit history remains. One thing’s for certain: bankruptcy will have a long lasting and extremely negative effect on your credit score if you do nothing to repair credit after bankruptcy. It will drop several hundred points, where it will remain until you are able to rebuild your credit. Even after your credit has improved, your bankruptcy will stay on your record for 10 years. Creditors will be wary of granting credit to anyone with a prior history of bankruptcy because doing so could be a big gamble. This is the main reason you might want to seriously think about finding a way to remove bankruptcy from your credit report. Credit repair after bankruptcy will help you rebuild your credit score and means you don’t have to wait 10 years for bankruptcy to disappear from your credit report. This also means that you will be eligible for other credit accounts and loans much earlier than you might think. If you believe an item such as bankruptcy is on your credit report in error, or if you have an inaccurate bankruptcy credit report, you have the right to challenge that entry. Credit bureaus are required by law to remove inaccurate entries under the Fair Credit Reporting Act (FCRA), and they have the legal obligation to verify information on a bankruptcy credit report. If they cannot verify the information, it has to be removed. Lexington Law specializes in helping you remove questionable bankruptcies and other inaccurate items from your credit report. Over the years they have deleted thousands of negative items from their clients’ credit reports. If you need to remove bankruptcy from your credit report so you can start rebuilding the credit you deserve, contact Lexington Law now.