How to Remove Bankruptcy From Your Credit Report

Bankruptcy on credit reports can make it difficult to access credit or even find housing. So if you’re looking for how to remove bankruptcy from credit reports, you’re not alone. But is it even possible to remove a bankruptcy from a credit report? Here’s a closer look.

Can you remove a bankruptcy from your credit report?

If you’re wondering how to remove bankruptcy from credit reports, you should know that if the bankruptcy information is accurate, you generally can’t remove it yourself. The law determines how long bankruptcy stays on your report.

Importantly, if a credit repair agency claims it can remove an accurate bankruptcy from your credit report, it’s almost certainly a scam.

How long bankruptcy stays on your credit report

For many people, bankruptcy on credit reports can cause a serious credit score drop, but it doesn’t last forever. Fortunately, there are legal limits on how long a bankruptcy may remain on your report.

Chapter 7 bankruptcy

Generally, Chapter 7 bankruptcy on credit reports shows for up to 10 years from the date you filed for bankruptcy.

This type of bankruptcy may be right for you if the following apply:

• You have low to moderate income
• You have few assets
• You have a large amount of unsecured debt, like credit card debt

Chapter 7 bankruptcy eliminates most unsecured debts, and it can give you a financial clean slate relatively quickly. However, some of your assets may be seized and sold to pay creditors.

Once your bankruptcy is finalized, creditors generally have 60 days to update your accounts. The debts themselves will still appear on your credit report, but they should show a $0 balance and include a note saying they were discharged in bankruptcy.

Chapter 13 bankruptcy

Chapter 13 bankruptcy stays on your credit report for up to seven years after you file. Instead of discharging most debts, Chapter 13 bankruptcy restructures them. You pay toward your debts for three to five years, and after that, the remaining debts are discharged.

Chapter 13 bankruptcy typically lets you keep all of your assets, and it may be a better choice if you have a steady income.

How to rebuild your credit after bankruptcy

If you’ve been searching for how to remove bankruptcy from credit reports, you might be disappointed to hear that you can’t remove it early. But keep in mind that bankruptcy offers you a fresh financial start, and you can improve your credit with a bankruptcy still on your report. These steps may help you get your credit moving in the right direction:

Make all payments on time

Payment history is the most important factor when it comes to calculating your credit score. If you can, set all payments on autopay to reduce your risk of missing one.

Use a credit-building tool to add positive payment history

You don’t have to take on high-interest debt to build credit. Credit-building tools can help you establish a positive payment history that looks good to lenders and can help rebuild your score.

Kikoff is one of those tools. When you join us, you gain access to an interest-free credit line you use to buy items in our online store. We report your on-time payments to credit bureaus, helping you boost your score.

We also offer a range of other credit-building and financial education tools to help you get closer to your goals.

Keep credit utilization low

If you do take out credit cards to help build credit, remember to keep utilization low. Ideally, your balance should be less than 30% of your credit limit.

Monitor your credit reports regularly

Keep a close eye on your credit reports and dispute errors if you see them. If a debt that was discharged in bankruptcy is still showing up, be ready to show the creditor your documentation.

We’re here to help on your credit journey

Bankruptcy gives you a chance to transform your credit and improve your overall financial wellness, and Kikoff is here to make the process simpler. There’s no fee to join, and we don’t check your credit. Download the app and get started today.