Can Chapter 7 Bankruptcy Be Removed From My Credit Report Before 10 Years?

How Long Does Bankruptcy Stay on Your Credit Report?

A Chapter 7 bankruptcy filing stays on your credit report for 10 years, and Chapter 13 stays on your report for seven years. 

The timelines for how long Chapter 7 and Chapter 13 bankruptcy stay on your credit report come from the Fair Credit Reporting Act (FCRA), which is a federal law that sets rules for how long negative information can remain on your credit history. The timeline for Chapter 7 is longer because it eliminates most unsecured debts (credit card debt , medical bills, personal loans, etc.) and you don’t have to repay even a portion of them. The timeline for Chapter 13 bankruptcy is shorter because you have to partially repay your debts during a required 3–5-year repayment plan.

How Does Your Bankruptcy Get Reported to the Credit Bureaus?

Bankruptcy filings are part of the public record. Credit bureaus regularly monitor public records for this kind of information and will automatically update your credit report when they find a bankruptcy filing. The bankruptcy court doesn’t report information to the credit bureaus.

Once reported, the bankruptcy will appear on your credit report under the public records section, along with the type of bankruptcy (Chapter 7 or Chapter 13) and the filing date. Lenders and creditors will be able to see this information when they check your credit. 

Can You Remove Bankruptcy From Your Credit Report Before 10 Years?

There’s no way to remove a bankruptcy from your credit report early. Chapter 7 bankruptcy cases stay on your credit report for 10 years, and Chapter 13 cases stay on for seven years. After this time, the bankruptcy will disappear from your credit history automatically. 

Though you may hear of credit repair companies offering to remove negative items from your credit report, this isn’t possible. That’s because creditors are legally required to report accurate information to credit bureaus. They must also remove any inaccurate information. So, if your bankruptcy filing is accurately reported on your credit history, you simply have to wait for time to pass.

Here’s the good news: The older the bankruptcy filing gets, the less it will impact your credit. And as soon as you receive your bankruptcy discharge, you have many options for rebuilding your credit.

How Does Filing Bankruptcy Impact Your Credit Score?

Filing for bankruptcy usually negatively impacts your credit score, but the extent depends on your starting score and financial situation. If your credit is already low due to missed payments or high debt, the drop may not be as dramatic. 

In the years following your bankruptcy, it may be harder to get loans or credit. And if you do, the interest rates could be higher. Many people are surprised to see that they get a lot of credit offers after filing. That’s because creditors know you can’t file again for eight years, so you’ll be on the hook to repay the debt. Having a bankruptcy filing on your record also won’t stop you from buying a home. Though it might take a few years to be able to do so.

The best part of bankruptcy is that it gives you a fresh start. By eliminating most or all of your debts, you can start rebuilding your credit sooner. Many people see their credit scores improve within a year or two of filing, especially if they consistently pay bills on time and use credit responsibly moving forward.

How Can You Improve Your Credit Score After Filing Bankruptcy?

There are many ways to improve your credit score, and you can start rebuilding it as soon as you get your bankruptcy discharge. 

Here are some key strategies to help rebuild your credit:

1. Review your credit report: After your bankruptcy is discharged, request a free copy of your credit report from all three major credit bureaus — Equifax, Experian, and TransUnion. You can access all reports from annualcreditreport.com. Check for any errors, such as debts that should have been discharged in bankruptcy but are still listed as active. Disputing inaccuracies and having them removed can boost your score.

2. Pay your bills on time: Consistently paying all your bills — like rent, utilities, andor credit cards — on time is one of the most important things you can do to rebuild your credit. Payment history makes up a large part of your credit score, so even small, timely payments can help boost your score over time.

3. Consider a secured credit card: A secured credit card is designed for people looking to rebuild their credit. You provide a cash deposit as collateral, and that deposit usually becomes your credit limit. Using a secured card responsibly can help you rebuild your credit history. Make sure the secured card issuer reports to the credit bureaus so your positive payment history is reflected on your report.

4. Keep your credit utilization low: Credit utilization is the percentage of available credit you’re using. To improve your credit score, try to keep your credit utilization ratio below 30%. For example, if you have a secured credit card with a $500 limit, aim to keep your balance under $150 at any given time. This shows lenders that you’re managing your credit responsibly.

5. Avoid applying for too much new credit: After bankruptcy, it can be tempting to apply for new credit to rebuild your score quickly. However, applying for too much new credit at once can hurt your score. Each application results in a "hard inquiry," which lowers your credit score temporarily. Be selective about the credit you apply for and focus on using it wisely.

6. Consider credit-builder loans: A credit-builder loan is a small loan designed to help people build credit or rebuild their credit. The loan amount is usually held in a savings account while you make monthly payments. Once you’ve paid off the loan, the funds are released to you, and your positive payment history is reported to the credit bureaus. This is another way to rebuild your credit while saving money at the same time.

7. Be patient and persistent: Rebuilding your credit after bankruptcy takes time, but it’s completely possible. Focus on making good financial decisions, like budgeting, building an emergency fund, and managing credit responsibly. Over time, you’ll see your score improve as the negative impact of bankruptcy fades.

How Can You Remove Errors From Your Credit Report?

If you find errors on your credit report, especially related to your bankruptcy, you should dispute them right away. While you can't dispute the bankruptcy itself, you can challenge any incorrect details about it or other accounts. To do this, contact any of the three credit reporting agencies  showing the incorrect information. Though you can dispute online, it's better to send your dispute by mail. Mailing the dispute creates a paper trail and avoids agreeing to clauses in online forms that could limit your rights, like preventing you from suing.

Both the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC) offer letter templates to help you get started. Your letter should include your name, credit report number, birth date, address, and the date. You can also add your Social Security and driver’s license numbers, though these aren't required. List details of the dispute, such as account numbers, the dates of the errors, and which company is responsible. Also, include a clear explanation of the inaccuracies and any supporting documents to back up your claim.

To learn more, read our comprehensive guide on disputing credit report errors.

Let's Summarize…

You can’t get a bankruptcy taken off your credit report if it’s accurate. Chapter 7 bankruptcy remains on your report for seven years, and Chapter 13 remains for 10 years. Under the FCRA, if there are inaccurate entries on your credit report regarding your bankruptcy, you can dispute them and have them removed. If the agency or creditor that reported the information can’t explain the issue, they must remove the item. 

Although filing bankruptcy hurts your credit score, you can take steps to build your credit. Over time, this will decrease bankruptcy’s negative impact and allow you to build the best credit possible.