How to Dispute a Bankruptcy on Your Credit Report
Get the sample letter from the FTC., Format your letter., Explain why the bankruptcy information is wrong., Mail your letter., Wait for a response., Think about including a statement of dispute.
Step-by-Step Guide
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Step 1: Get the sample letter from the FTC.
The Federal Trade Commission (FTC) publishes a sample dispute letter that you can use as a template for drafting your own.
It is available online for anyone to use., You should format your letter as a standard business letter.
Include your name and address as well as the name and address of the credit reporting agency (CRA) which has the erroneous bankruptcy information.You have to send a letter to each CRA that has the erroneous bankruptcy information.
If all three do, then send a letter to all three:
Experian, Equifax, and TransUnion. , The purpose of your letter is to explain why the bankruptcy information should not be on your credit report.
There are at least three different reasons why the bankruptcy information shouldn’t appear:
You didn’t file for bankruptcy.
It is hard to prove that something didn’t happen.
However, you could simply write: “The notation that I filed for bankruptcy on March 1, 2013 is inaccurate.
I have never filed for bankruptcy.
I am requesting that the item be removed to correct the information.”You did declare bankruptcy, but it should have fallen off your credit report by now.
A Chapter 7 bankruptcy should fall off your credit report 10 years after you filed the bankruptcy petition.
If you filed a Chapter 13, then it should fall off seven years after.Be sure to include a copy of your bankruptcy petition with the date stamp on it along with your letter.
You can get a copy of this document from the court clerk of the bankruptcy court.
You filed for bankruptcy but then had it vacated.
You might have filed bankruptcy to wipe out certain debts but then resolved the debts so that the bankruptcy became unnecessary.
In that case, you should have filed to “vacate” the bankruptcy.
Get a copy of the judge’s order vacating the bankruptcy and include it with your letter. , After you complete the letter, be sure to sign it and then keep a copy for your records.
You should mail the letter certified mail, return receipt requested.Hold onto the receipt.
It will serve as proof that the credit reporting agency received it. , After receiving your request, the CRA will investigate.
It must complete its investigation within 30-45 days and then provide you with the results of its investigation in writing.If the bankruptcy information was included in error, then the CRA should correct your credit report and then provide you with a free copy of the corrected report.
You can also request that the CRA send corrections to anyone who requested a copy of your credit report during the past six months.
You can also ask that a corrected report be sent to someone who received a copy of your credit report for employment purposes during the past two years. , The CRA might determine that the bankruptcy information is accurate and will refuse to remove it from your credit report.
In this situation, you should think about including a statement of dispute.
Generally, the statement must not be more than 100 words.
Think carefully before including the statement.
Some people think you should never add a statement because it suggests you are admitting fault.It also might be better to explain the bankruptcy in person when you apply to rent an apartment or apply for a job.
In those situations, you don’t gain anything by adding a statement of dispute.
A sample statement could read, “I filed for bankruptcy because of health care costs associated with my cancer, which is in remission.
I have had no other negative credit information before or after my health scare.” -
Step 2: Format your letter.
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Step 3: Explain why the bankruptcy information is wrong.
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Step 4: Mail your letter.
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Step 5: Wait for a response.
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Step 6: Think about including a statement of dispute.
Detailed Guide
The Federal Trade Commission (FTC) publishes a sample dispute letter that you can use as a template for drafting your own.
It is available online for anyone to use., You should format your letter as a standard business letter.
Include your name and address as well as the name and address of the credit reporting agency (CRA) which has the erroneous bankruptcy information.You have to send a letter to each CRA that has the erroneous bankruptcy information.
If all three do, then send a letter to all three:
Experian, Equifax, and TransUnion. , The purpose of your letter is to explain why the bankruptcy information should not be on your credit report.
There are at least three different reasons why the bankruptcy information shouldn’t appear:
You didn’t file for bankruptcy.
It is hard to prove that something didn’t happen.
However, you could simply write: “The notation that I filed for bankruptcy on March 1, 2013 is inaccurate.
I have never filed for bankruptcy.
I am requesting that the item be removed to correct the information.”You did declare bankruptcy, but it should have fallen off your credit report by now.
A Chapter 7 bankruptcy should fall off your credit report 10 years after you filed the bankruptcy petition.
If you filed a Chapter 13, then it should fall off seven years after.Be sure to include a copy of your bankruptcy petition with the date stamp on it along with your letter.
You can get a copy of this document from the court clerk of the bankruptcy court.
You filed for bankruptcy but then had it vacated.
You might have filed bankruptcy to wipe out certain debts but then resolved the debts so that the bankruptcy became unnecessary.
In that case, you should have filed to “vacate” the bankruptcy.
Get a copy of the judge’s order vacating the bankruptcy and include it with your letter. , After you complete the letter, be sure to sign it and then keep a copy for your records.
You should mail the letter certified mail, return receipt requested.Hold onto the receipt.
It will serve as proof that the credit reporting agency received it. , After receiving your request, the CRA will investigate.
It must complete its investigation within 30-45 days and then provide you with the results of its investigation in writing.If the bankruptcy information was included in error, then the CRA should correct your credit report and then provide you with a free copy of the corrected report.
You can also request that the CRA send corrections to anyone who requested a copy of your credit report during the past six months.
You can also ask that a corrected report be sent to someone who received a copy of your credit report for employment purposes during the past two years. , The CRA might determine that the bankruptcy information is accurate and will refuse to remove it from your credit report.
In this situation, you should think about including a statement of dispute.
Generally, the statement must not be more than 100 words.
Think carefully before including the statement.
Some people think you should never add a statement because it suggests you are admitting fault.It also might be better to explain the bankruptcy in person when you apply to rent an apartment or apply for a job.
In those situations, you don’t gain anything by adding a statement of dispute.
A sample statement could read, “I filed for bankruptcy because of health care costs associated with my cancer, which is in remission.
I have had no other negative credit information before or after my health scare.”
About the Author
Theresa Martinez
Professional writer focused on creating easy-to-follow creative arts tutorials.
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