Does bankruptcy ever come off credit report?

A discharged Chapter 13 bankruptcy will remain on a person's credit report for 7 years from the date of filing, not the date of discharge, and a Chapter 7 stays for 10 years from the date of filing, not discharge.It is very hard to get credit with a banruptcy on your credit report.It is better to try to pay your bills thru debt consolidation,loan companies will see that you are paying your debt,and when you finish the program,you will see your credit score go up,as your debts are reported as paid in full.There are other topics on this subject on this board,Im sure someone can give you a link to those post,which will give you lots more insight on the downside of filing bankruptcy.
Hope I anwsered you question.

Bankruptcy on your credit can give you credit because they know you cant file again for 10 years. So the debt consolidation company that is saying you cant get credit is full of shit. They rip you off with really high payments so Screw them they are all RIP OFF'S beware!!!

heather -- I filed bankruptcy a year ago and just bought a new car the interest rate was higher but if I make my payments on time in 6 months I can refinance. I tried that credit counsiling what a joke It got us sued because one card card company didn't agree to the amount of money the credit council company was paying them and issued a judgement against us, we thought the credit counsiling company would protect us and they didn't. We weren't even informed that this particular credit card company rejected their offer. $10,000.00 we paid to the credit counciling company and they took our money in fees and starting fee of $1500.00 didn't pay our credit card bills on time or even pay the amounts they promised. Needless to say after all that we were still bankrupt.
If your that far in debt just file put an end to it and start to rebuild again other than draging on your bad credit over time and throwing your money out the window they won't save your credit.
It also helped my credit because I left my house out of the bankruptcy and continued to make my payments on time and my credit score really isn't that bad.
Good Luck

Its easy to get a car after bankruptcy,I filed about 4 years ago and had no problem,except the interest rates are very very high.They can take the car back if you dont pay,so they will give you the loan at high rates.I have been trying to get a home loan,but because of the bankruptcy on my credit report,I keep getting turned down.The mortgage lenders told me,that consolidating my other debts will help,but until the BK leaves my report,I will be paying the highest interest rates out there.They look at bankruptcy as a more negative mark since,it looks like the debtor is trying to not make good on a promise to pay a loan.On the other hand if you consolidate you are paying your debt,and are a better credit risk.Until you pay off you loans,your credit score will still be affected,but in time it will improve.With bankruptcy,you will have to wait 10 years.There are some good and some bad consolidation companies,make sure you check with the BBB and do some research before selecting one.One other thing,the only type of credit cards that I could get,were very low limit and very high interest.I am not trying to sell consolidation to you,but as someone who has been there done that,I would only reccommend bankruptcy as a last resort.

If you are having huge amount of debt, you can choose either bankruptcy or consolidation and improve your credit. But, remember, if you file for bankruptcy, your credit will improve after 10 years from the date of filing. Whereas, if you choose consolidation, your credit will improve from the day you enrolled in this program and the final results will come up when you have completed the plan of your payments. It can be either 6 months, 1 year, 2 years, 5 years depending upon the amount of debt you have put in the program. But ultimately, you will get the positive results before bankruptcy can give it.

There are many other reasons for which bankruptcy should be avoided. Not only you will be paying highest rates of interest to your lenders, but your credit scores will also reduce drastically. Bankruptcy is considered to be a negative remark ruining your chances of new credit. It is upon the lenders wishes whether they want to extend credit to you after filing bankruptcy. After you file for it, they will analyze your payment skills and understand how much you are responsible towards your debt this time. Read this page for a better understanding on why to avoid bankruptcy.

http://www.debtconsolidationcare.com/avoid-bankruptcy.html

Whereas, a consolidation program will show its positive effects depending upon the way you make your repayments. This program is much appreciated by the lenders because it still proves your responsibility of paying the debt unless you file for BK. The rates of interests are comparatively lower in this program and the stay in your CR is also as long as you are enrolled in it.

But remember, always do an extensive research before you give your money to any company. The consumer protection office of each state keeps a list of all business organizations and their activities. Besides, the legitimate companies will register with the Better Business Bureau and show their business done legally.

I was really really shocked, my step son and daughter in law filed bankruptcy several years ago and they just bought a new car and are moving into their new house. They were instantly approved with no problems, for both. I asked how they did it with their credit and a bankruptcy and they told me it was no longer on their record and their credit is now excellent. Its spotless!

I'm happy for them. But its a kick in the butt to me because I am trying so hard to do the right thing and pay all my bills--charge offs and all. My husband is dead set against bankruptcy, he said we made the bills so we will do the responsible thing and pay the bills. He says its just the right thing to do. So we are struggling trying to clean up everything and get everything paid off. Its hard work but we'll do it. Its just discouraging hearing step son and wife brag about their 'spotless' credit when they filed a bankruptcy, yet here we are trying to do the right thing and its a struggle. But this was our decision right?? Also, people like us are the ones that catch the most hell from creditors and collection agenies, because we are trying to do the right thing. Yet other people that aren't trying, just seem to get away with it.
(TO MAKE MYSELF CLEAR HERE,I AM NOT TALKING ABOUT SOME OF YOU THAT HAVE FILED BANKRUPTCY, so please don't think I'm refering to you, I'm NOT!!) I know people and so do you, that just con their way through life, get stuff on credit (knowing good and well that they're not going to pay for it, they have no intentions of every paying for it) and don't pay for it, then collection agency comes after them, they just ignore CA and eventually they stop trying to get the money and they get away with it. Here I am 'begging' creditors and collection agencies to talk to me and take my money. :roll:

so anyways, as far as my step son and wife, theres not one bit of evidence on their report that they ever filed bankruptcy and its been a little over seven years now.

I was under the impression that a bankruptcy stayed on your credit report for 10 years, Ours will be on their until 2010. We filed medical bankruptcy do to the huge medical bills from our first daughter totally over $50,000. Like I stated above, ours is on their until November 2010. If I am wrong on the 10 year thing, feel free to correct me.

mom of twins, I wonder if there are different time frames for different states? Because I know for step son and wife, it hasn't been ten years. I also know that his wife used her sisters husband to do it because he is a lawyer. I will have to ask her next time I see her, because as I said in my other post, I was shocked that their credit is spotless after bankruptcy, it doesn't seem like it was that long ago and I know for a fact it hasn't been ten years. Shirley

I think its federal law that it has to stay on the report for ten years. The post above by twokidtwocat also states the 10 year reporting of chapter 7 bankrutpcy.

I would like to share my thoughts here.

A correct negative entry can never be removed from your credit report; it will be there according to FCRA guidelines.

However, some credit repairing agency promises to remove bankruptcy from your credit report. They might adopt some specific technique and can ultimately succeed to remove it, but this is never advisable, because-

They charge a lump sum for doing this.
There is no guarantee that bankruptcy will be removed at all.
It can re-appear in your report any time.

Suppose, it is removed from your credit file finally somehow, in reality it is there and you are still responsible for this. So let it go off naturally with due course of time. That was my view.

Quote:

When we filed in 2000 it was 7 years but thanks to the government its now 10 years.

I think it different laws for different chapters. I did a chapter 7 after my divorce and it was discharged in Dec 2002. Mine will stay on my report for ten years after the date of filing which was Aug 2002. I think some creditors might let if fall off after seven years. I've been approached by companies stating that for a small monthly fee that they can remove my bankruptcy and other negative marks from my credit report. I think they are called credit repair agencies. I ignore them because like it was stated, it takes time for these things to come off. Believe me, I regret doing the bankruptcy now. I thought it was my only alternative at the time. I've been able to rebuild my credit report up over one hundred points over the last couple of years but it's my hard work and paying bills on time. Believe me, it hasn't been easy after I got wrapped up in the payday loan trap. So, I know it will take time but I'm finally on the right road to recovery. :D

msmishele30, if you don't know. No credit repair agency can remove the accurate negative information from your file if they claim to do so. Only the federal authorities have the legal powers to remove it only if there is any inaccuracy in your file. The credit repair agency will make money from you because of your lack of adequate knowledge.

Chapter 13 bankruptcies have the provision to stay in the CR for 7 years. But there are certain requirements before you can qualify for chapter 13 bankruptcies. Chapter 7 will stay for 10 years.

A correct negative credit entry can be removed from your credit file. Just because you did it, does not mean it can't be removed. The reason being is because you can dispute your debt three ways. The way that gets you the best response in my exprience is inaccurate.

The credit bureau has 30 days to do an investigation, which consists of sending out a debt validation letter to your creditor. The creditor then has to return it to the reporting agency. If this isn't done within a 30 day period, by law it has to be removed from your credit report.

I can speak about this because I have filed and recovered from bankruptcy in less than a year. I have had 70% of all of the negative items deleted off of my credit reports. All three! So it is possible.

I am not contradicting your point but accurate negative information like bankruptcy, foreclosure, repossession, judgments cannot be removed from your file before the 7 years period as per the FCRA laws.

The items that have been reported by your creditors incorrectly must be removed from your file as it does not have a legitimate reason to stay. To verify the details of the account from the creditors, send a DV letter and if they fail to respond, it should be disputed with the CRA. They will run an investigation and if your dispute is found correct, the item which was posted incorrectly will be removed from your file.

I have already responded to this in an other forum. But to sum that up, I understand what you are saying, but unless you've filed and have gone through this process you will interpret the law the way you see fit because it doesn't (not sure if you have filed) or hasn't affected you like it has done me.

Also, you can't speak of the things that have been deleted because you are just assuming that they were removed for the reason that supports your argument. I have to differ because I have seen my reports and the items that have been deleted. Not meant to offend you at all, but it's very difficult to speak on it if your situation is different or dissimilar to mine. I can only speak of what I've gone through, and I can honestly say the deletion process has worked for me, and they were not all old accounts.

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To whom it may concern,
About 2 years ago, my chapter 13 was dismissed. How can I get a dismissed chapter 13 off my credti??
Thanks,
Ms.Yolandra

If a Chapter 13 was dismissed that is not a good thing. Do you mean your Chapter 13 was discharged? Because having it discharged is what happens when you successfully complete the plan. If you have been dismissed that means the creditors can come after you full payment and all interest accrued during the time you were in your chapter 13 plan. If you were actually discharged then you need to look at your credit report and dispute anything that still shows to have the items updated, a bankruptcy can stay on your report for up to 10 years.

Hope this helps.

Actually, it is possible to get a BK negative mark removed from your acct.
You have to get your reports, you do a report gathering to file BK-KEEP A COPY OF IT.
POST BK, any acct that does not show IIB (included in Bankruptcy) should be disputed with Original creditor. Here is where the deletion occurs, rather than them waste their time and energy on verifing information, they delete the entire acct from your report. Also OC's like to update acct status after your bankruptcy as charged off/paid rather than IIB. You will at that point notify OC that they are reporting wrong and chances are, that acct will be deleted.

It takes alot of time and effort in cleaning up your reports, but it can be done.

One other thing, if you are losing everything in your bankruptcy, then YES, you will have HIGH interest rates. If you are reaffirming debt, then you will not have high interest rates two years post BK, because you already have a good, two year payment history of on time payments.

KEY WORD HERE: on time payments!!!

We filed bk three years ago (chapter 7), lots of medical bills and bad business decisions. However we refinanced our home in February of 2006, filed bk in 2003 that year we have since received regular credit cards not subprime ones, got a car loan through my credit at 5.4% interest rate. I think that it depends on what your fico scores were when you initially filed bk..our mortgage broker told us that we would be considered A paper within 6 mos of that date and then bought an investment property.

So unfortunately it is bad when you have no choice but to file for bk at least it gives you a fresh start. It is just too bad it doesn't cure the illness that made you have to do it in the beginning.

ladybug

I've got to agree with that. I know a person who filed BK 7 a year--they were approved for a CapOne card with a $3000 limit with an interest rate below 20%. The same person, however, was denied a store card due to the BK.

Bankruptcy do eases your strains a bit. You do not have to deal with the creditors anymore, you do not have to screen your answering machine nor you have to read those nasty mails. Bankruptcy though gives you a "fresh" financial start by wiping nearly all your debts. But one can not use bankruptcy to avoid responsibilities. One should try their best to restore credit after bankruptcy.

People often get to a place where they simply cant pay their bills, especially in todays economy which is not particularly sympathetic toward the poor or even the middle class. Inflation has impacted nearly every facet of daily life including food, gas, rent, clothes, utility bills and more. At the same time, salaries, especially in the lower ranges, have utterly failed to keep pace. When you get to the place where you cannot pay your bills and have money left over for food and other necessities, there are some hard decisions that have to be faced. The options are credit counseling and debt management services, or bankruptcy. Both have their pros and cons, so which road to take depends largely on the individual and how severe his or her financial problems have grown.??????????????

Link deleted as per forum rules - Mike

My BK is about to come off my credit report. Does anyone know ABOUT how many points my score will go up?

Jen75 - that will depend on your credit outside of your BK. If you have tried to keep everything paid on time since your filing, your credit will look pretty good after the BK comes off.

chapter 7 stays on for 10 years, chapter 13 for only 7.

and having just filed, and taken the now required credit counseling course...

paying your bills on time won't help your credit, credit reports only contain credit card and loan payments made on time, neither of which you will have once you file bankruptcy... sign up with a Payment Reporting Builds Credit website if you want paying your bills on time to help your credit, like insurance, and utilities, it won't go on your credit report but rather it is its own report which you can use with new creditors to show your payment history.

ANYTHING (other than bankrupcty) older than 7 years MUST be removed from your credit report via federal law!!!

we also tried to go through them the year before we filed, but had the same problem as the one person stated earlier.

Our purposed plan monthly payment actually tripled (ended up being $800 a month) since not ONE of our creditors would accept the purposed plan.... NOT ONE. The credit management place couldn't get the creditors to LOWER our INTEREST RATES or our BALANCE DUE like they advertise.

Many of the creditors also refused to change the due dates of the cards, so the payments made through the debt management people were LATE EVERY MONTH! Continuing to accumulate over-the-limit-fees and late-fees.

IT WAS A DISASTER and we actually went through a very reputable company, but that doesn't mean diddly if the creditors won't cooperate. (and going into this we weren't behind on any of our credit cards)

So good luck to anyone trying to do the best thing and go through them.

Actually, it is possible to still have loan payments after filing BK. We just filed Chapter 7, and once it is discharged, we will still have a first and a second mortgage. I know that it is also possible to still have a car payment after filing. As long as your equity in the property does not exceed your allowable exemptions and you are allowed to keep the property, and you continue to make the payments, those debts still remain after BK because they are secured.

If you file a chapter 7 it will be on your report 10 years, it use to be 7. If you file a chapter 13 and complete it, it will be on your report 7 years. If you do not complete it, it will be on your report for 10 years.

My bankruptcy end date is next month (Sept 08). Will it automatically go off my credit reports or do I need to contact someone and have it taken off? Thanks

I think it's supposed to come off automatically. If it doesn't, you could dispute it with the credit bureaus.

I filed bankruptcy in 2002. I understood, at the time, it would remain on my credit report for 7 years. Now I'm reading it will remain for 10 years. Doesn't the law at the time of the discharge remain in effect? Isn't that under the " grandfather clause"? Am I completely off the mark?

Chapter 7 does remain for 10 years....Chapter 13 only for 7.

Chapter 7 stays 10 years where Chapter 13 generally stay only 7 years. However, mortgage companys normally like to see 2 years of good payment history after discharge. My husband and I filed Chapter 13 and where able to purchase 2 new cars and a home within 3 years of filing;however we have become very aware of our purchases and don't get over extended therefore we always make our payment on time.

you can get credit, especially auto loans, because they love a reason to charge outrageous rates. Credit cards make take a good year or two of showing good payment history after a BK, also mortgages tend to be 2-3 years after BK, but with all the new changes in Mortgage rules, that I am sure will increase. As far as the credit report, there are 2 kinds of BK and one stays on for 7 yrs and the other stays for 10. credit counseling is a rip off. What they do is collect your money put it into an "account" until you have given them enough money to "pay" one of the credit account, some of them hold on to this money until you have given them all the money to pay all the accounts. Guess what is happening to your credit in the mean time- your getting a lot of negative reporting. Honestly I think you can take of things yourself with a plan, get a book from Suze Orman, if it is so huge that you can't even begin to find a shovel, I honestly would talk to an attorney about BK. Different life situations put even the best people in this situation. I think the only ones who abuse this are the repeated filers, honestly they never learned their lesson if they've filed more than twice in their lifetime and that is taken into consideration that they are over 50, there is no excuse if you are under 40 with two BK's.

Sjax, I guess those are your opinions. Your facts are marred. credit counseling may be a rip off, but debt management programs can help a person as well as debt settlement. Those programs can keep a person from filing BK.

And your statement "there is no excuse if you are under 40 with 2 BK's", is certainly off the mark! What about the person who needed to file BK b/c some drunk driver w/o insurance hit them and the medical bills piled up; or the entreprenuer who had a business but an employee embezzled from them? Your generalizations are hurtful, not helpful. Please think before you post your opinions.

I have credit card debt and now I am facing judgements and wage garnishment. Superior debt was supposed to be helping me but apparently they are worthless. Is there still hope for us after all this??

It has been over 10 years ago

Dispute it as obsolete

My ex husband and I filed backruptcy in march of 99, I have a 720 score and would like to have this removed, how do I go about that. Thanks

Guest ~ it should drop after the month that is was filed it, although it might take a little longer. If you filed, say June of 99, it will not drop until June of 2009, if it was a chpt 7. Keep an eye on your credit report.

how do you go about taking bankrupcty off your credit as its been 10years in september 2009 when i filed

Dispute it with the CRAs if it has not dropped off after Sep 2009.

it was chpt 7,even after almost 10 years my credit still not good enough to get a small loan at a bank,do i have to let these credit people no,so they can take it off my credit when it s time..

I am active military and I am in debt up to my eyes for the past two years I have been trying to pay off debts with no success so I am looking seriously at filing chapter 13 any suggestions I'm open to em

Call a few lawyers. Most give free consults. Good Luck

Does anyone think, because of today's economy and job losses, that a negative credit rating means as much? I mean, who isn't in this situation these days?

I've wondered myself how this is going to turn out. I mean they've raised what is considered a "GOOD" credit score to the 800's, however with so many folks in financial trouble, seems like no one will ever be able to get credit again.....

its not a fedral law that it stays on 10 years, it can stay on for 7-10 years, and it can be removed before than..I filed a BK in 2005 and already have removed it from 2 of the 3 bureaus -- The bureaus must verify and validate the public record or they have to delete it , does'nt matter if its yours or not-