How to Remove a Bankruptcy From Your Credit Report
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If you have or are considering the possibility of declaring bankruptcy, two of the most common questions that are asked are: When will your bankruptcy be removed from your credit report? And how can you remove the bankruptcy from your credit report?
Fortunately, the answer to these two questions are straightforward and do not require you to do a whole lot of leg work.
- Related: What to Know About Your Credit
There are two common types of bankruptcy, says Experian, a consumer credit reporting agency.
Chapter 7
Chapter 7 bankruptcy is also known as “straight bankruptcy.” This is where a federal court trustee supervises the sale of all properties. The amount of revenue that is generated from the sales is applied to the amount of debt that you owe.
If you still have debt, that amount is then excused and the bankruptcy is discharged.
This type of bankruptcy will be on your credit report for ten years.
Chapter 13
In a Chapter 13 bankruptcy, you are allowed to keep your property but you will need to negotiate a three-to-five-year repayment plan with your creditors.
In the case of a Chapter 13 bankruptcy, it will be on your credit report for seven years. with a Chapter 7 filing, you are paying back a negotiated amount to the creditor.
This type of bankruptcy will be on your credit for seven years.
How does Bankruptcy get removed from a credit report?
Bankruptcy should automatically be deleted from your credit report after seven or ten years, depending on with bankruptcy you have.
Once you have waited seven or ten years, obtain your credit report to ensure that the information has been removed.
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