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Can a incorrectly dismissed bankruptcy be fixed years later?

Phoenix, AZ |

My husband and I filed for Chapter 13 bankruptcy about 9 years or so ago. We didn't realize that it was reported to the credit bureaus as dismissed vs discharged. We paid off the bankruptcy early by refinancing our home. Because we had to file a Chapter 7 bankruptcy 3 years ago - we are having difficulty getting financing on cars and autos due to the 13 being dismissed and remaining on our credit report for 10 years.

Can the status of the BK be fixed or do we have to wait the additional year for it to drop off our credit reports?

Attorney Answers 4

  1. What happened when you disputed the entry on your credit report? That was the obvious first step.

  2. With such an old chapter 13 you should be able to find some lenders that will work with you. You should ask a local bankruptcy attorney for referrals to lenders who are familiar with bankruptcy. These lenders are usually more sophisticated and can do the work to help you get a loan since they deal with people who have had a bankruptcy everyday. You should simply ask if the attorney gets a referral fee or not to learn if they are paid for sending your business generally they are not and will provide you with contacts they have found to be reliable.

    These statements do not constitute legal advice. They are meant to be general in nature, for any specific legal questions you should always seek the counsel of an experienced attorney.

  3. A bankruptcy will stay on your credit for 10 years - dismissed or discharged.

    This firm is in the business of helping people and companies file for bankruptcy protection. Therefore, the bankruptcy code requires that we call our firm a "debt relief agency." This information is provided for general information purposes only and is not intended to be a legal opinion, legal advice or a complete discussion of the related issues. Nor is this advice intended to create a client - attorney relationship. Every individual's factual situation is different and you should seek independent legal advice from an attorney familiar with the laws of your state or locality regarding specific information.

  4. The type of bankruptcy matters. Your Credit score is determined by an algorithm created by the Fair Isaac Company, FICO for short. I have included a link below to MY FICO for you to review their FAQs. One thing they tell you is that a Chapter 13 will stay on your credit for 7 years, and a Chapter 7 will stay on for 10. If the entries are on your credit longer than this, you should file a dispute with the credit agencies. You can pull a free copy of your credit report and file disputes at the second link I have added below. This is a link to the only site officially authorized to provide the free report. Other sites may provide one, but you run the risk that they are seeking to sign you up as a customer. Good Luck.

    I am an Attorney with Fife & Cesta, a compasionate bankruptcy firm conveniently located off the US 60 in Mesa, Arizona. In addition to our other areas of practice, Fife & Cesta is a debt relief agency. We help people and families file for relief under the bankruptcy code. The answers given here are based on the information in the question, but for a complete answer you should have a consultation with an attorney you trust. Call (480) 850-6541 for a free bankruptcy consultation. We carefully evaluate your situation and give you real advice.

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