How to Remove Derogatory Items After Bankruptcy

Bankruptcy offers a fresh start following excessive debt. Bankruptcy pays or eliminates all unsecured debt such as credit cards, and resolves issues with secured debts such as automobile loans or home mortgages. Some people keep cars and homes through bankruptcy, while others allow repossession or foreclosure. The process leads to a slew of derogatory items on credit reports, with limited options for removal. The Federal Trade Commission reports that derogatory information on credit reports, such as charge-offs and late payments, must remain for seven years. Bankruptcy information remains for a minimum of 10 years.

Instructions

1

Obtain copies of your credit reports from Annual Credit Report. The website is the only site endorsed by the Fair Trade Commission to offer free credit reports under the terms of the Fair Credit Reporting Act. Visit the website to view and print credit reports from the major credit bureaus---TransUnion, Equifax and Experian.

2

Review each report separately, as they may contain different information. Highlight each derogatory item on the reports. Note if the items are outdated or the information is wrong. Federal law prohibits credit bureaus from posting credit information that is outdated or wrong.

3

Write letters to the credit bureaus challenging wrong or outdated information. Ask for removal of outdated items and updates or removal of items are wrong. Items resolved through bankruptcy, such as credit card accounts, should receive updates indicating that that they were "included in bankruptcy," according to Experian. This does not remove the items, but accurately reflects that the accounts are paid. Specifically ask for updates on that accounts eliminated by the bankruptcy.

4

Send the letters to the credit bureaus at their respective addresses listed on the credit reports. Or dispute the information online or over the telephone by following instructions on the credit reports. Allow the credit bureaus 30 days to respond.