How to Remove Bankruptcy From a Credit Report

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Bankruptcy cannot be removed from a credit report unless it was erroneous, and typically, it takes seven to 10 years for a bankruptcy to disappear from a credit report. Discover how foreclosures can also damage credit reports with help from a financial adviser in this free video on credit scores and bankruptcy.

Part of the Video Series: Credit & Loans
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Video Transcript

How do you remove a bankruptcy from a credit report? The answer is, you don't. It's there, it happened, it's real. If it was erroneous, of course you can always get it removed. But typically that type of event is going to remain on your credit report for a minimum of seven years and in some cases ten years. Foreclosures likewise are damaging to a credit report but the good news is the further out you get from the event, the better it is. Here's the difference between a chapter thirteen and a chapter seven. A chapter seven bankruptcy is once and done. A chapter thirteen is where you pay your creditors back at some agreed upon rate and that can last two, three, four, five, six years. If you have a choice between a thirteen and a seven, from the standpoint of reestablishing your credit you're better off in doing the seven because then it's once and done. The thirteen is the more noble thing to do, you've paid off your credit card and your mortgage or whatever else may be, but it puts you in suspended animation as far as getting credit is concerned, the whole time you're inside the thirteen. It's like you're you know, in suspended animation, your life can't go forward. People find this out after the fact. So if you have legal options and you can repudiate that debt, doing a chapter severn my suggestion would be go ahead take that chapter seven, get done with it and go forward and get your clean slate going. So there's no way of removing, now if it stays on your credit report longer, for a longer period of time then that, you can certainly contact the credit card companies, file a complaint in writing and they'll have to remove it. But by law it needs to stay on at least seven years.


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