29,945 bankruptcy removals

were removed from Lexington Law
clients' credit reports in 2010

A Bankruptcy is Not the End of the World

How Long Does a Bankruptcy Remain on Your Credit Report?

Consumer credit is one of the greatest inventions of our modern age. Our credit economy opens many doors to consumers who lack the out-of-pocket means to purchase their dream homes, new cars, finance their education and leverage convenient credit cards when cash strapped. However, with easy credit comes easy debt. Consumer debt is a fact of life.

Unfortunately, the results of a shaky economy, variable interest rates, and lost jobs have left many consumers with only one option in the face of mounting debt: bankruptcy. Obviously, a bankruptcy can have a devastating effect on your credit score. In fact, for some lenders, a bankruptcy listing on your credit reports is the only thing they need to see in order to determine that you are completely unworthy of credit.

A bankruptcy listing can remain on your credit reports for quite awhile: either 7 years from the filing date for Chapter 13, or 10 years from the filing date for Chapter 7, 11 or 12. But remember that these 7- and 10-year periods represent only the MAXIMUM (and not the minimum) time frames. In other words, the credit bureaus must automatically remove bankruptcy-related items from your credit reports once the designated time periods have passed.

Can a Bankruptcy Be Removed From a Credit Report?

You may be feeling a bit stuck when it comes to removing a bankruptcy listing. While it's true that the maximum time frames apply, there are consumer protection rights that enable you to challenge questionable items on your credit report even when they are related to a bankruptcy proceeding:

• The maximum time frame has passed. Pursuant to the Fair Credit Reporting Act (FCRA) the credit reporting agencies are required remove bankruptcy notations from your credit report after the allotted reporting time period has expired. In that regard, it's wise to get copies of your credit reports to ensure that your bankruptcy removal is reflected.
• You were a victim of identity theft. Here's a nightmare scenario: you filed for bankruptcy last year after a long struggle with your finances. You were also a victim of identity theft around the same time. Some of the charges on your credit card were dismissed because they were the result of stolen identity. However, this decision was not reflected in your credit report and your credit score is suffering.
• New accounts are mistakenly marked as "included in bankruptcy." Carefully review your credit reports to make sure that accounts not associated with your bankruptcy are not mislabeled. If the credit agencies are incorrectly reporting bankruptcy notations to any of your accounts in good standing, you have the right to challenge this reporting.

How to Move On

When choosing a credit repair company, it is important to find a firm that will defend your rights and help you understand the details of bankruptcy. Lexington Law helped clients receive over 29,500 bankruptcy removals in 2010, spanning all circuit and municipal courts across the nation.

In 2010 Lexington Law clients had over 29,945 bankruptcies removed from their Credit Reports.

To speak with a paralegal about your bankruptcies and other items on your Credit Report, Call now: