How Long a Bankruptcy Stays on a Credit Report

The Fair Credit Reporting Act (FCRA) dictates how long negative information can remain on credit reports. Per the FCRA bankruptcies may remain on a credit report for 10 years following the discharge of the bankruptcy. Discharge means the release of a borrower from the obligation to repay his or her loan.

Details on Steps to Repair Your Credit Report

The FCRA allows for consumers to contact the credit bureaus directly to correct inaccuracies. If you find any information you believe to be inaccurate or wrong here are the steps to take in dealing with the credit bureau:

1. Contact the credit bureau. Inform the credit bureau in writing what information you believe is inaccurate. Include copies (never send originals) of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information, and request deletion or correction. You may want to enclose a copy of your report with the items in question circled. See some of the Sample Letters for help. Send your letter by certified mail, return receipt requested, so you can document what the credit bureau received. Make sure to keep copies of your dispute letter, enclosures and anything you send to a credit bureau.
   
2. Investigation. The credit bureaus must reinvestigate the items in question (within 30-45 days). The bureaus must forward all relevant data you provide about the dispute to the information provider (creditor). After the information provider receives notice of a dispute from the bureau, it must investigate, review all relevant information provided and report the results to the bureau. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide bureaus, so they can correct this information in your file. Disputed information that cannot be verified must be deleted from your file.
   
   - If your credit report is determined to contains erroneous information, the bureau must correct it.
   - If an item is determined to be incomplete, the bureau must complete the item. (For example, if your file showed that you were late making payments, but failed to show that you were no longer delinquent, the bureau must show that you're current.)
   - If your file shows an account that belongs only to another person, the bureau must remove that item.
   
3. Notification to you. When the reinvestigation is complete, the bureau must provide you the written results and a free copy of your credit report if the dispute results in any change. If an item is changed or removed, the bureau cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the bureau gives you a written notice that includes the name, address, and phone number of the provider.
   
4. Notification to others. Additionally, if you request it, the bureau must send notices of corrections to anyone who received your report in the past six months. Job applicants can have a corrected copy of their report sent to anyone who received a copy during the past two years for employment purposes. If a reinvestigation does not resolve your dispute, ask the bureau to include your statement of the dispute in your file and in future reports.
   
5. Addition of a statement. The three credit bureaus will usually allow you to add a 100 word statement to your credit report. This tends to happen after a dispute has been submitted to the bureau and decided against. The value of this clarifying statement is up to debate. Many argue that most creditors do not look at this statement.
   
6. Response stating dispute is frivolous. At times credit bureaus may respond to your dispute stating that it is "frivolous" or "irrelevant." This most often happens when the bureaus feels a consumer is disputing an item that was just upheld, with very short or no duration in between disputes. This is again up to debate, and very subjective. Many argue the bureaus use the frivilous claim too easily and that you should push in order to have the dispute go through.
   

Some Credit Report Options: