Bankruptcies are extremely damaging to your FICO score. As it is based on the contents of credit reports, removing the negative entries boosts the total immediately. However, it is not always possible to do this. Here are the basics of bankruptcy removal.
Most negative items, such as late payments, stay on your records for 7 years. However, some bankruptcies might tarnish your records even longer — throughout a decade. It depends on the chapter filed — i.e., how much of the debt is repaid. In the case of Chapter 7, where none of your debt is covered, the effects are the most lasting.
Bear in mind that you may only delete a false bankruptcy. Any accurate information on your reports will stay there until it ages off the records. There is no way to remove it, and any company offering to do it is scammy.
On the other hand, you may use repair services from a well-established firm to accelerate the legal process. Check the best credit repair services on creditrepairpartner.com to find the best providers in your area. Consumers might try to dispute bankruptcies by themselves, but this process is quite challenging. Here is why.
5 Steps to Removal
Whether you hire a company or do everything yourself, the same sequence of actions is followed:
- First, you need to collect the data and analyze it.
- Then, you should gather evidence to prove that the bankruptcy is false.
- Finally, this information must be communicated to lenders and bureaus in writing.
Sometimes, contacting the courts is the last resort.
1. Collect Your Records
Every citizen of the United States may download a copy of their report from each of the major bureaus. Until April 20, 2022, this may even be done weekly. Previously, the service was only rendered once a year. To gather the information, go to www.annualcreditreport.com and submit your request. You could also call the organization or send a written request, but this will delay the result.
Why do you need all three sources? A lender may communicate with only one bureau. Therefore, getting one or two reports does not give you an entire gamut of the situation. For instance, a bankruptcy reported to Experian is not reflected on your TransUnion or Equifax report. Unfortunately, the agencies do not share information with one another.
2. Identify Mistakes
Scrutinize the bankruptcies on your records. If you notice any inaccuracies, they may be disputed. Generally, the older the item — the easier it is to remove it. However, you cannot do this without evidence, so proceed to the next step.
3. Collect Evidence
The bureau will remove your bankruptcy if you provide sufficient evidence that it is non-existent. Collect bank statements and other documents to support your claim. Then, you may send a dispute letter directly to the bureau involved.
4. Dispute the Bankruptcy
By law, the agency has 30 days to respond. It will investigate the situation and liaise with your lender. If the item is not validated, it is wiped off your records. If the entry has been verified, you may request information about its origins.
5. Request More Details
In a procedural request letter, you should ask for additional details from the bureau. Establish what organization confirmed the bankruptcy. Often, bureaus reply they have liaised with the courts, but this may not be true. Next, you can write to the courts involved.
6. Contact The Courts
Send a written request to the courts. Ask them if and how the bankruptcy was confirmed. If they reply that this did not happen, you are in luck. Send a copy of that written statement to the bureau.
At this point, you have the right to demand the derogatory be removed, as the agency provided inaccurate information beforehand. This constitutes a violation of the Fair Credit Reporting Act, so you should have your bankruptcy deleted eventually.
Accelerating the Process
As you see, getting rid of bankruptcy is not a piece of cake. This process is complex, prolonged, and tiring. Unless you have the necessary expertise, you will save time by delegating to a repair company. The experts will handle all the stages in the process, from analysis to communication with courts.