The Fair Credit Reporting Act provides that "negative" information can be reported on a credit report for up to 7 years from the date of last activity. There is an exception for bankruptcy cases. They can remain on a credit report for up to 10 years. Many of my clients wonder, though, if the removal from the credit report happens automatically, or do they have to do something.
It's always a good idea to take action. The credit reporting bureau should automatically update the credit report information, but that doesn't always happen the way it should. Thus, there are four easy steps you can take to make it happen.
First, pull your report. The information on the credit report will be helpful to you in the event you have to dispute information. You'll know the correct account numbers, etc...
Second, make copies. Make copies of your bankruptcy discharge notification, the debt schedules in your case, your driver's license, your social security card, and a piece of mail (such as a utility bill) that verifies your address.
Third, send notifications. Send letters to all three national credit reporting agencies: Experian, TransUnion and Equifax. Keep the letters short. Point out that you filed bankruptcy 10 years ago and therefore all record of the bankruptcy must be removed. Include the copies you made in Step 2. Never send original documentation!
Fourth, wait. Wait at least one month before applying for credit or taking any action that would make someone look at your report. Once you've completed these steps, the bureaus will update your report within 30 days. After this 30 days (usually wait 35 days to give the bureaus time to receive your mailed letter) your report should be clear!
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March 2nd, 2007 at 3:32 pm
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