How Long Will a Dismissed Bankruptcy Stay on Your Credit Report?

This personal bankruptcy question was posted on the internet in 2011 in a bankruptcy discussion: “How long will a dismissed bankruptcy stay on your credit?

A dismissed bankruptcy is a filed bankruptcy that has been discontinued either at the request of the filer or the court. There are a variety of reasons for having a dismissed bankruptcy, but regardless of the reason, there are two facts about a dismissal that will most likely influence your credit report- there has been no discharge of debts and the bankruptcy was officially filed.

Filing for bankruptcy is a process. Once you file a a bankruptcy petition with a U.S. Federal Bankruptcy Court, the information is placed in their records. Once the petition reaches the court and is entered into the system it becomes public record, and public record vendors can report the information to credit bureaus. Credit bureaus receiving the filing information can keep the bankruptcy on a debtor’s credit report for up to 10 years.

Just because a bankruptcy has been dismissed, credit bureaus may not necessarily remove the bankruptcy from their reports. The fact remains you filed for bankruptcy and may still have outstanding debts, especially since the debts were not likely discharged in bankruptcy. This information could be valuable to creditors who might be considering extending you credit.

Here, it may be important for you to also understand that credit reporting agencies are not required to remove information about a filed bankruptcy from credit reports just because the bankruptcy was dismissed. Since there are a variety of reasons why a bankruptcy can be dismissed, including bankruptcy fraud, the reason for the dismissal may be valuable information to a wide variety of people of whom you may be doing business.

Mistakes can be made within the filing and credit reporting systems, but when they do occur, removing the information from the credit reports can be a timely and costly legal process, even though these mistakes may not be of your doing. The Fair Credit Reporting Act governs how you should handle such errors if they occur.

How long will a dismissed bankruptcy stay on your credit report? Potentially, without some type of cooperation from the credit bureaus or a judgment from a court of law, up to 10 years.

Mistakes or no mistakes, bankruptcy laws can be complicated, and common sense indicates you might need a bankruptcy lawyer in order to help you understand how these complex laws may apply in your particular situation.

If you determine you are in need of relief from the stress associated with debt and you live in or around the metropolitan areas of Allentown, Bethlehem, or Easton, Pennsylvania, contact us here today at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area that will help you with any questions you may have on bankruptcy law.

The information provided in this article is not intended to be legal advice but is intended to be for informational purposes only.

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