How to Remove Bankruptcy From Your Credit Report

Bankruptcy can make it harder to qualify for credit or housing, so if you’re wondering how to remove it from your credit reports, you’re not alone. Accurate bankruptcy information generally can’t be removed early, but errors can be disputed. Here’s how to determine what can be removed, how long bankruptcy stays on your reports, and what you can do in the meantime.

Can you remove a bankruptcy from your credit report?

If the bankruptcy is accurate and still within its reporting period, you generally can’t have it removed early. But if the information is inaccurate, incomplete, outdated, or belongs to someone else, you have the right to dispute it.

Be cautious of credit repair companies that promise to remove an accurate bankruptcy. According to the Federal Trade Commission, no credit repair company can legally remove accurate and current negative information. You can dispute legitimate errors yourself at no cost.

How to dispute bankruptcy errors on your credit report

You can start the process by reviewing all three of your credit reports at AnnualCreditReport.com. Look for errors such as the wrong bankruptcy chapter, filing date, case status, or an entry that doesn’t belong to you.

If you find an error, submit a dispute to each credit bureau displaying it and include any supporting records you have. If a creditor is reporting the wrong balance or account status, dispute the information with both the credit bureau and the creditor.

Credit bureaus generally must investigate within 30 days, although some investigations may take up to 45 days. Once you receive the results, review the investigation response and your updated reports to see whether the information was corrected.

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How long bankruptcy stays on your credit report

For many people, bankruptcy can significantly affect credit scores, although the impact varies and may lessen over time. Fortunately, there are limits on how long bankruptcy can remain on your credit reports.

Chapter 7 bankruptcy

A Chapter 7 bankruptcy can remain on your credit reports for up to 10 years from the filing date.

Chapter 7 is commonly called liquidation bankruptcy. A court-appointed trustee may sell nonexempt property to repay creditors, although many Chapter 7 cases have little or no nonexempt property to sell.

A Chapter 7 discharge can release you from personal responsibility for many debts, but it doesn’t apply to every debt or eliminate every valid lien. The outcome depends on your debts, property, exemptions, and individual circumstances.

Your individual credit accounts won’t necessarily disappear when the bankruptcy is discharged. They may remain on your reports until their own reporting periods expire, but their balances and statuses should accurately reflect the bankruptcy.

Chapter 13 bankruptcy

Chapter 13 bankruptcy generally stays on your credit reports for up to seven years from the filing date. It allows people with regular income to propose a court-approved repayment plan that usually lasts three to five years.

You can generally keep your property while making the required plan payments. Once you complete the plan, the court may discharge remaining eligible debts. Some obligations, including certain taxes, child support or alimony, and most government-backed student loans, generally aren’t discharged.

Choosing a bankruptcy chapter is a major legal and financial decision. Consider speaking with a licensed bankruptcy attorney or nonprofit credit counselor for advice based on your circumstances.

How to build credit after bankruptcy

Learning that you can’t remove an accurate bankruptcy early may feel frustrating. The good news is that you don’t have to wait for it to leave your reports before you can begin adding positive credit history. These steps can help you move forward.

Make all payments on time

Payment history is the largest category used to calculate FICO Scores, so paying reported accounts on time is an important place to start. Payment reminders or autopay can help, but make sure enough money is available when an automatic payment is scheduled.

Use a credit-building tool to add positive payment history

You don’t have to carry high-interest debt to begin adding positive payment history. Credit-building products can give you another way to demonstrate consistent, on-time payments.

Kikoff’s Credit Account is a free revolving line of credit used in the Kikoff Store. Kikoff reports your on-time payments to all three credit bureaus, helping you build positive payment history without a hard credit check to sign up.

Keep credit utilization low

If you use credit cards, try to keep your reported balances low relative to your credit limits. The commonly cited 30% figure isn’t a hard cutoff or a prescribed target, but generally, lower utilization is better. Paying your balances in full when possible also helps you avoid interest.

Monitor your credit reports regularly

Check all three credit reports regularly so you can catch mistakes. Make sure the bankruptcy chapter, filing date, and case status are correct. You should also confirm that accounts included in the bankruptcy show accurate balances and statuses and aren’t incorrectly reporting new late payments after discharge.

Keep in mind that a discharged account can remain on your credit report until its reporting period expires. Its continued appearance isn’t necessarily an error, but you should dispute inaccurate balances, statuses, dates, or payment information.

Bottom line: We’re here to help on your credit journey

You generally can’t remove accurate bankruptcy information before its reporting period expires, but that doesn’t mean you’re powerless. You can correct reporting errors, monitor your reports, and begin adding positive credit history while the bankruptcy remains.

When you’re ready to take that next step, Kikoff’s Credit Account reports your on-time payments to all three credit bureaus, with no hard credit check to sign up. Get started with Kikoff.