Bankruptcy Remains on a Credit Report for Up to Seven Years Reports Iowa Bankruptcy Lawyer
Jul 7, 2012
Des Moines, IA (Law Firm Newswire) July 6, 2012 – Many debtors wonder how they can remove a bankruptcy from their credit report. The short answer is they cannot.
Many debtors that declared bankruptcy want to know how they can get rid of that notation on their credit reports noted Iowa bankruptcy lawyer, Kevin Ahrenholz. The answer to that question is they cannot get rid of the notation. It is a record of what happened in the debtor’s financial life and becomes part and parcel of their credit history. The only way it could be completely removed, would be if the debtor did ‘not’ declare bankruptcy and the reporting notation on the file was wrong. For instance, two people with the same name may find themselves in such a situation. However, it rarely happens.
That means that once the notation is made that a debtor declared bankruptcy, it goes into their credit jacket and stays there for a minimum of seven years. In other cases, it may be in the record for up to ten years. Foreclosures are another damaging ‘mark’ added to a credit report. However, with foreclosures, the more time that passes after the foreclosure, the better it is for the debtor Ahrenholz pointed out.
The type of bankruptcy declared also affects a person’s credit record. For example, with a Chapter 7 bankruptcy, it is considered to be a ‘one and done’ deal. Filed, processed, discharged and done. In a Chapter 13 filing, the debtor is paying their creditors back for anywhere from two to six years. If an individual wants to re-establish their credit sooner, rather than later, it is usually in their best interests to file for a Chapter 7 bankruptcy and be done with it quickly.
While many debtors feel it is more honorable to pay their debts off over a period of several years, and they feel more comfortable doing it that way, it leaves them hanging in the wind as far as being able to get credit. They cannot move forward and start re-establishing credit. They have to wait until the Chapter 13 is done, several years later before attempting to repair their credit. Many people filing a Chapter 13 bankruptcy do not know about this until later.
Make it a point to talk to a qualified Iowa bankruptcy lawyer about what options are available and make an informed decision about moving forward. By law, a bankruptcy must remain on a credit record for seven years. If it is still in the records after the seven year period has expired, the debtor may file a complaint, in writing. The credit reporting agency is then obligated to remove it.
Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact an Iowa bankruptcy attorney, Iowa bankruptcy lawyer, or set up an appointment, visit http://www.iowachapter7.com or call 1.877.888.1766.
Kevin Ahrenholz
309 Court Ave., Suite 805
Des Moines, IA 50309
1.877.888.1766
Offices in Des Moines, Cedar Rapids, Waterloo, Mason City, and Vinton.
