Can You Legally Remove Bankruptcy From a Credit Report?

While there are a handful of situations in which you can legally remove the public record of your Chapter 7 or Chapter 13 bankruptcy from your credit report, they are rare. If you filed and completed a personal bankruptcy, expect it to remain on your credit report for up to ten years.

This article will explain how a bankruptcy filing impacts your credit score and credit report. It also examines and discusses the process for removing inaccurate or invalid bankruptcy records from your credit report.

Credit Reporting Agencies and Your Bankruptcy Filing 

Whenever someone opens a new credit card or takes out a personal loan, the lender reports the information to the three main credit reporting agencies. These agencies are:

• Experian
• Equifax
• TransUnion

Major credit bureaus update their reports monthly, allowing creditors and lenders to gauge whether an individual or a business is creditworthy. These reports contain information on the following types of accounts:

• Credit cards
• Secured credit cards
• Bank loans
• Auto loans
• Mortgages and foreclosures
• Lines of credit
• Student loans
• Medical debts
• Judgments
• Bankruptcy filings

Major credit bureaus generally no longer include civil judgments and tax liens. Credit reports typically contain the following information:

• Your name, date of birth, address, and social security number
• Your phone number and most recent employer
• Whether you have ever made late payments
• The amount of your last payment
• Your credit limit

• Your current balance
• The date you opened the account
• Your overall FICO score, which is generated from credit report data and may be shown in certain disclosures, but isn’t a standing part of the report itself

While credit reports include most information about your accounts, they do not contain specific information, such as your interest rates or income.

Banks and other financial institutions can access your credit report for permissible purposes only. They also submit your account status and payment history to the credit bureaus every month.

How Long Do Bankruptcy Filings Stay on Your Credit Report?

A bankruptcy will stay on your record for ten years if you file a Chapter 7 bankruptcy and seven years if you file for Chapter 13 bankruptcy. After that time, the credit reporting agencies should automatically remove the record from your credit report.

According to the Fair Credit Reporting Act (FCRA), these timelines set the maximum time for a bankruptcy filing to stay on your credit report. Depending on the type of bankruptcy you file, some may be on your credit history for less time.

Requesting That Credit Bureaus Remove the Bankruptcy Record Sooner

There are times when you can ask the credit reporting agencies to remove or change your bankruptcy record. For example, if you’re working with a credit repair company and they identify an account that the court should have discharged in your bankruptcy, they will contact the creditor and request that they update their records.

The same thing is true if there is inaccurate information on your credit report. If you have a credit card reporting a seven-month delinquency on your credit report that was discharged in your Chapter 7 bankruptcy, it can cause an application for a credit-builder loan from a bank to be denied. If something like this happens,  you can contact the creditors and demand that they correct the record.

You have the right to ask the credit reporting agencies to fix any inaccuracies on your credit report. This doesn’t mean you can demand they remove a bankruptcy record simply because it’s showing as negative information on your report.

When Can’t You Remove a Bankruptcy from Your Credit History?

The reason people file for bankruptcy is to get a fresh start. They realize they cannot pay their debts and appeal to the courts for assistance. This is why it can be frustrating when your credit report isn’t accurate. It makes sense in this situation to ask the credit bureaus to update your report to reflect the fact that the court discharged your debt.

There are also times when the credit reporting agencies report that you filed for bankruptcy when you didn’t. This could be the result of a clerical error or even incorrect information submitted by the person who actually did file for bankruptcy.

Asking the credit reporting companies to report accurate information is one thing. Asking them to remove a public record, such as a bankruptcy, from your report without a legitimate reason is entirely different.

You cannot legally remove bankruptcy from your credit report just because:

• You do not want it on your record
• You have a good credit score again
• Your debts are paid off
• You regret filing for bankruptcy

If the credit reporting agencies have saddled you with a bankruptcy you didn’t file and refusing to correct it, it’s a good time to speak with a bankruptcy attorney.

How To Remove a Bankruptcy Filing From Your Credit History

Every year, you should go to a website like Annualcreditreport.com and request your free credit report. It’s a good idea to confirm that the information on your report is accurate. If you find any discrepancies, you can contact the credit reporting agency for help.

You must have a valid reason for asking the credit reporting agencies to remove a bankruptcy discharge from your public records. There are certain things to look out for when you review your credit report.

You should be wary of mistakes such as:

• Incorrect information on your credit report
• A personal bankruptcy that stays on your credit report longer than seven (or 10) years
• Creditors reporting debt and bankruptcy information incorrectly
• Incorrect bankruptcy filing dates
• Discharged debts still showing up on your report
• Incorrect names, addresses, contact information, or dates
• Bankruptcy filing on your report when you never filed

In some cases, a bankruptcy can appear on your report because of mistaken identity, identity theft, administrative mistakes, or a completely random error. These are less common, but you may need an attorney to prove it is not your responsibility.

The Legal Process for Removing Bankruptcy Errors

You can challenge any error you find on your credit history or bankruptcy filings. The credit reporting agencies must remove them if they cannot prove they are legitimate.

You must complete the following steps to prove there is an error on your credit report:

• Decide if you want to hire a bankruptcy attorney
• Contact the U.S. Bankruptcy Trustee’s Office and report bankruptcy fraud (even if the bankruptcy filing was a genuine mistake, it is still called bankruptcy fraud)
• Provide the Trustee’s Office with the following information:
  • Name
  • Address
  • The credit reporting agency or business you are reporting
  • Bankruptcy case number
  • Case caption
  • Location of the filing
  • Identifying information about the company
  • Description of the fraud
  • How you learned about the fraud
  • When the fraud occurred
• Determine the damages (money, lost homes, lost loans, etc.) the credit reporting agency’s mistake has cost you, if any
• Wait for the FBI to review the case (if the case involves a criminal investigation, the Department of Justice will not disclose the investigation unless it needs more information)
• Gather supporting documentation and specific factual information, which will serve as evidence to defend your fraud claim in court
• Work with a credit repair attorney to review your case or prepare you for the court date

Proving bankruptcy fraud can be a drawn-out and time-consuming process. A legal advocate can help reduce stress and save time throughout the process.

Disclaimer: Bankruptcy laws change frequently. While FindLaw strives to provide readers with the most current information, you should consult a local bankruptcy attorney regarding your bankruptcy petition.

Confirm Your Bankruptcy Status

You can get a free copy of your current credit report once a year. Pulling your own credit report is a soft inquiry and does not affect your score.

If you see a bankruptcy record that should not be there or any bankruptcy paperwork has a mistake, a bankruptcy attorney can give you an honest idea about how long the repair process will take and help with a repayment plan.

Related FindLaw Resources

• Buying a House After Bankruptcy
• How Soon Will My Credit Score Improve After Bankruptcy?
• What Happens After Bankruptcy?
• The Bankruptcy Stay
• Debt Discharge in Bankruptcy: FAQ