Can I remove a bankruptcy from my credit record?
Letter to “Ask Leon”
My ex and I filed bankruptcy in 1998. The major reason was an IRS debt that was unmanageable. For reasons that I won’t discuss here my debt was not discharged through bankruptcy. I eventually paid the debt through an offer and compromise. My other debts were small–between $3 to 5K.– I have been told that I can remove my bankruptcy from my credit record because my essential reason for filing BK was not satisfied. Is this true? And do I need a lawyer?
Dear J.P: You probably can’t remove the bankruptcy from your credit record, because after all is said and done, you actually did file it. Credit reports are just like a newspaper, they print facts. The fact in your case is that you did file bankruptcy, and it doesn’t matter whether or not the bankruptcy was granted. The readers of a newspaper want to rely on the accuracy of what is reported. Of course, it’s understandable that you want to remove derogatory information from your credit report, but if a person was allowed to remove such information when it was actually true, then the reports become unreliable, and won’t be of any use to the lending industry. Those reports are not for your benefit, they are for the benefit of the lending industry; lenders are willing to pay the credit reporting service a fee for the information because they want to know how you have handled your financial responsibilities.