Can You Remove Bankruptcy From Your Credit Report?

Bankruptcy is a public record that appears on your credit report. If the information is accurate, you cannot remove it. However, if you find inaccuracies, you have the right to dispute them with the credit reporting agencies. In rare cases, such as an improperly filed involuntary bankruptcy petition, the court may prohibit reporting to the credit bureaus.

How Long Does Bankruptcy Stay on Your Credit Report?

The duration that bankruptcy remains on your credit report depends on the type of bankruptcy filed:

• Chapter 7 Bankruptcy: Also known as liquidation bankruptcy, it stays on your credit report for 10 years from the filing date.
• Chapter 13 Bankruptcy: Known as reorganization bankruptcy, it remains on your credit report for 7 years from the filing date.

While bankruptcy can significantly impact your credit score, its negative effects can diminish over time, especially if you take steps to rebuild your credit.

How Long Do Accounts Included in Bankruptcy Stay on Your Credit Report?

Accounts included in bankruptcy, such as late payments, defaults, charge-offs, or collection accounts, are removed from your credit report 7 years from the date of the original delinquency. The only exception is if the negative information was reported inaccurately.

How to Check Your Credit Report

Regularly reviewing your credit report is essential, whether you are still in the bankruptcy process or your case has been discharged. You can check your credit report for free with Experian anytime and get free access to your FICO® Score. For reports from Equifax and TransUnion, visit AnnualCreditReport.com for free weekly access.

As you review your credit reports, look for inaccuracies such as incorrect bankruptcy filing dates or other negative items you don’t recognize. If you find something, you have the right to file a dispute with the credit bureaus.

The Bottom Line

Filing for bankruptcy can be a necessary step in restarting your financial life, but it can have a dramatic impact on your credit score. While it takes time for a legitimate bankruptcy record to be removed from your credit reports, you don’t have to wait to start rebuilding your credit. Monitor your credit regularly to understand how your actions impact your score and to track your progress. Regular monitoring can also help you spot potential issues and inaccuracies that can further damage your score.

At O1ne Mortgage, we understand the challenges of rebuilding your financial life after bankruptcy. Our team of experts is here to assist you with all your mortgage needs. Call us today at 213-732-3074 to learn more about how we can help you achieve your financial goals.