What Is Bankruptcy & How Does It Affect Your Credit?
Bankruptcy is a legal process that allows individuals to eliminate or restructure debt when they cannot repay their obligations. While it provides relief, it also has a severe negative impact on credit scores and remains on your credit report for up to 10 years.
Types of Bankruptcies & Their Credit Impact
Chapter 7 Bankruptcy – Liquidates assets to clear unsecured debt (stays on report for 10 years).
Chapter 13 Bankruptcy – Sets up a repayment plan over 3-5 years (stays on report for 7 years).
How Bankruptcy Affects Your Credit Score
- Major Credit Score Drop – Bankruptcy can lower your score by 100-250 points.
- Loan & Credit Approval Issues – Many lenders won’t approve new credit applications.
- Higher Interest Rates – If approved, expect extremely high rates.
- Security Clearance Risks – Can affect government & military job approvals.
Since bankruptcy stays on your report for years, removing it early can improve your credit score and financial opportunities.
How to Remove a Bankruptcy from Your Credit Report
- Dispute Inaccurate or Unverifiable Bankruptcy Records
Under the Fair Credit Reporting Act (FCRA), you can dispute a bankruptcy if it is:
Incorrect – Wrong dates, incorrect filing type, or inaccurate details.
Outdated – Must be removed after 7 years (Chapter 13) or 10 years (Chapter 7).
Unverifiable – If the court does not verify the bankruptcy, it must be deleted.
Step 1: Obtain a free credit report at AnnualCreditReport.com.
Step 2: Look for errors in your bankruptcy details.
Step 3: Send a written dispute letter to Experian, Equifax, and TransUnion.
Step 4: If the bankruptcy record cannot be verified, it must be removed.
Note: Credit bureaus do not get bankruptcy records directly from courts. Instead, they use third-party data furnishers like LexisNexis. If the credit bureaus cannot verify the bankruptcy, they must delete it.
- Request Bankruptcy Removal via Court Verification
Because credit bureaus do not receive bankruptcies from the courts, you can:
- Contact the bankruptcy court that processed your case.
- Request a written statement that they do NOT report bankruptcies to credit bureaus.
- Use this as evidence to dispute the bankruptcy with credit bureaus.
Many consumers have successfully removed bankruptcies using this strategy.
- Dispute Accounts Included in Bankruptcy
Even if the bankruptcy itself remains, you can dispute individual accounts that were:
- Misreported as “included in bankruptcy” when they were not.
- Reported with incorrect balances or dates.
- Listed as open instead of closed after discharge.
Removing these accounts can improve your credit score, even if the bankruptcy stays.
- Wait for Bankruptcy to Expire (7 to 10-Year Rule)
If disputing the bankruptcy is unsuccessful, you may need to wait for it to naturally expire.
Chapter 7 Bankruptcy – Automatically disappears after 10 years.
Chapter 13 Bankruptcy – Automatically disappears after 7 years.
At Credit1Solutions.com, we help clients challenge inaccurate bankruptcies and provide legal-backed dispute strategies to improve credit as quickly as possible.
How Long Do Bankruptcies Stay on Your Credit Report?
| Bankruptcy Type | Time on Credit Report |
|---|---|
| Chapter 7 Bankruptcy | 10 years from filing date |
| Chapter 13 Bankruptcy | 7 years from filing date |
| Discharged or Dismissed Bankruptcy | Same as original timeline unless removed earlier |
Removing or correcting bankruptcy records earlier than the expiration date can significantly improve your credit standing.
How Credit1Solutions.com Helps Remove Bankruptcies Faster
- We dispute inaccurate bankruptcy records using FCRA-backed legal challenges.
- We contact credit bureaus and courts to verify bankruptcy removal eligibility.
- We remove misreported accounts included in bankruptcy.
- We help clients rebuild credit after bankruptcy.
Instead of waiting years, we help clients legally remove or minimize bankruptcy impact as soon as possible.
Client Testimonials
Jessica P., Homebuyer
“A bankruptcy from 8 years ago was still showing on my report. Credit1Solutions.com got it removed, and I finally got approved for a mortgage!”
David R., Military Personnel
“I needed my bankruptcy removed to secure a security clearance. Credit1Solutions.com handled everything, and my record was cleared!”
Mark J., Small Business Owner
“Credit1Solutions.com helped me dispute incorrect bankruptcy-related accounts, and my credit score jumped 90 points!”
Frequently Asked Questions (FAQs)
Can I remove a bankruptcy before 7 or 10 years?
Yes, if it is inaccurate, unverifiable, or incorrectly reported, or if the credit bureau cannot verify it with the courts.
Does paying off debts included in bankruptcy remove it from my report?
No. Even if debts are repaid, bankruptcy still stays on the report for 7-10 years unless disputed successfully.
Should I dispute a bankruptcy if it’s valid?
Yes! Even if the bankruptcy is accurate, credit bureaus must verify it correctly, and errors can lead to removal.
How much does a bankruptcy lower my credit score?
A bankruptcy can lower your score by 100-250 points, depending on your credit history.
Can Credit1Solutions.com remove bankruptcies for me?
Yes! We dispute inaccurate bankruptcy records, challenge reporting errors, and help consumers rebuild their credit.
Get Bankruptcies Removed the Right Way – Contact Us Today
If a bankruptcy is damaging your credit, don’t wait 7-10 years for it to disappear. Let us help.
✔ We remove inaccurate and unverifiable bankruptcy records.
✔ We dispute errors and challenge misreported accounts.
✔ We help security clearance holders protect their credit.
✔ We provide credit rebuilding strategies after bankruptcy.