6 Steps: How to Remove Bankruptcy from Credit Reports
Do you feel overwhelmed by your past financial decisions? Do you wish you knew how to remove bankruptcy from your credit report?
Are you ready to take the next steps to help your credit get healthy?
Understanding credit can be tricky– Lets make it simple
I have talked to multiple friends and family who have struggled with bankruptcy. It has become a widespread occurrence in today’s society.
I want to make your experience with credit accessible and straightforward. I have gathered the best tips and tricks on how to remove bankruptcy from credit reports so you can improve your credit and improve your life.
What You Will Need
Depending on the type of bankruptcy declared, after 7-10 years, bankruptcy will automatically come off your credit report. But what if you want to remove it early?
Removing bankruptcy early means you have the possibility of getting a mortgage, car loan, or other types of credit without extremely high-interest rates that follow people with bankruptcy.
Do not let one mistake affect your life for the next ten years. Bankruptcy makes it challenging to get any type of loan or credit. Having financial limitations can drastically affect your life for the worse.
Removing bankruptcy can be a long and tedious process, but it is worth attempting.
For this tutorial you will need:
- A copy of all three credit reports
- Paper, envelope, and stamps
- A calm and rational mind (sold separately 🙂 )
The steps I am going to walk you through are how to remove bankruptcy from your credit report yourself. But there are professional companies that can help. All you have to do is give them a call, and they handle the whole procedure.
Working with a professional is an excellent option for people who are busy, looking for a stress-free solution, or want to make sure an expert is handling the situation.
- History of success
- Knowledgeable about the topic
- Someone else handles the challenging parts
- Costs money
6 Steps: How To Remove Bankruptcy From Your Credit Report
1. Monitor Your Credit
Throughout this process, you are going to need to monitor your credit. Start by getting a copy of all three credit reports. In the United States, there are three national credit bureaus. You will need a transcript from Equifax, Experian, and TransUnion.
To get these reports, you merely request them from each agency. You are entitled to a free credit report from each bureau once every 12 months. These can be collected all at once or staggered throughout the year.
Requesting can be done online, by phone or by mail. Reference the government site for the specifics and what to do if your request gets denied.
I would also recommend signing up for an online credit monitoring service will allow you to keep track of your credit, and check for the next step.
2. Check Your Credit for Inaccuracies
You need to look for any inaccuracies that may be part of the bankruptcy entry. You will want to look very carefully for any mistake.
Things to look for:
- Identity information (wrong name, phone number, address)
- Accounts that may belong to another person with the same or similar name
- Incorrect accounts that occurred from identity theft
- Closed accounts reported as open
- You are reported as an owner of an account but are only an authorized user
- Accounts incorrectly reported as late or delinquent
- Incorrect date opened, date of last payment, date of delinquency
- Same debt listed more than once
- Accounts that appear multiple time with different creditors listed (especially common on accounts in collections)
- Incorrect current balance
- Incorrect credit limit
There may be other inaccuracies you find as well; the important part is to look closely and pay attention to detail.
If there are any inaccuracies, you simply dispute the bankruptcy entry with the credit bureaus, saying the information is incorrect and therefore should be removed. Dispute via letter with the mistakes explained and make sure to send to each bureau.
If there are no inaccuracies, move on to the next step.
3. Checking Verification
You will need to check with the credit bureaus on if they verified your bankruptcy. Contact each company separately, but make the same request.
Send this request via letter. Legally, credit bureaus must respond to any dispute within 30 days. So be patient and know the processes has started.
Usually, the credit bureau will respond saying the completed verification with the court. However, this is often unlikely and if so, in your benefit. Credit bureaus rarely go through the steps needed to verify with the court.
Make sure in the original letter you asked who they verified it with, so you can quickly move on to the next step.
4. Reach Out to the Courts
Now you will want to reach out to the court with the same question. How did they verify your bankruptcy?
If the court responds they never verified the bankruptcy – which is the most common scenario – ask to get the statement in writing.
5. Send the Courts Response to the Credit Bureaus
Send the statement from the court to the credit bureaus with a letter asking to have the bankruptcy removed. Mention that the bureau knowingly provided false information and has violated the Fair Credit Reporting Act.
If all goes well, removal of bankruptcy should occur.
6. Follow Up
Just because the credit bureaus said they would remove the bankruptcy does not mean they will. Keep monitoring your credit and reach out if you do not see a change.
This is where working with a professional can be beneficial, because they will follow up for you and continue to help your future credit.
During this whole process, it is essential to keep a calm and rational attitude, at least in writing. The credit bureaus are educated on how to shut down requests that do not follow procedure. Take emotion out of your letters and remain technical and factual.
Older bankruptcies have a higher chance of getting removed. If your bankruptcy is relatively recent, evaluate if you have time to wait. And if your first attempt is denied, give it some time and try again. Instead of waiting ten years you may only have to wait a couple.
Please keep in mind that everyone’s credit situation is different. I have given the best steps I know, but in some scenarios it may not work. Still, it never hurts to try.
Credit Reps Conclusion
Did you enjoy my tutorial on how to remove bankruptcy from credit reports? Credit bureaus go out of their way to make you believe you can’t remove bankruptcy.
Yes, over time it will come off your credit reports. But there are steps you can take to make that processes happen sooner.
With so many people experiencing bankruptcy today, it is important to me that I assist however I can. I have the knowledge, and I want to share it. Helping you get healthy credit can improve your quality of life.
Is this a problem you have struggled with in the past? Perhaps you have had success or experience with what not to do. Share your thoughts in the comments. And if you found this article helpful, please share it so others can experience the same.