How to Remove Bankruptcies
A bankruptcy is a declaration to the government that the person filing for bankruptcy can no longer pay their debts and they wish to have their debts removed, erased, or lessened. There are four types of bankruptcies; chapter 7, chapter 11, chapter 12 and chapter 13. According to law, bankruptcies you filed cannot be removed from your credit report until either seven or 10 years have passed depending on which type of bankruptcy was filed.
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Instructions
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Determine the date you filed bankruptcy. Determine the type of bankruptcy filed; whether it was a chapter 7, 11, 12 or 13.
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If the bankruptcy is a chapter 7, 11 or 12, the bankruptcy will be removed from your credit report after 10 years from the date the bankruptcy was filed. Chapter 7 can be filed by individuals and businesses and is the most severe type of bankruptcy. Chapter 11 is less severe but can only be filed by large businesses. Chapter 12 is a type of bankruptcy for family farmers and fishermen.
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If the bankruptcy is a chapter 13 then the bankruptcy will be removed after seven years from the date it was filed. Chapter 13 bankruptcies allow people to have their debts lessened, have payments postponed and to have a repayment plan set up.
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If you did not file for bankruptcy and there is a bankruptcy on your credit report, send a letter of dispute to all three credit bureaus stating the inaccuracy or inaccuracies on your credit report and that you wish for them to show proof the bankruptcy is legitimate or have that bankruptcy removed. Under the Fair Credit Reporting Act, credit reporting agencies must clear up all inaccurate information on consumer credit reports or prove the information on the credit reports is accurate if a formal inquiry is made.
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Tips & Warnings
Do as much research on bankruptcies you can before filing for bankruptcy.
Explore other alternatives before filing for bankruptcy.
Be sure you know what you are getting into before filing for bankruptcy.
Bankruptcy can be devastating to your credit and very disruptive to your life.
References
Resources
- Photo Credit Bankrupt. Businessman with empty pockets (with clipping paths) . image by Vitaliy Pakhnyushchyy from Fotolia.com
