Q: How do I remove the DISMSD/CLSD CH7 on my credit report? We didn't go through the BK process and was never delinquent.
With a pending lawsuit, which was dropped, we had to file BK. However, a settlement was reached, the lawsuit dropped and the BK dismissed by the Federal judge. We were never delinquent on any bills/credit obligations. NO ONE got hurt (our credit reports shows that). Yet, everyone is interpreting the DISMSD/CLSD CH7 as a failure and we can't get credit. How can this be cleaned up?
A:
I feel for you, but I'll explain why it won't get cleared up. It is going to remain on your credit report for 10 years. It will stay there because your credit report is a summary of how you have handled your financial obligations. You actually did file bankruptcy. Filing it was your choice.
Contrary to what you say, you did not "have to file." You could have litigated the suit without filing bankruptcy.
But, you filed because the filing gave you certain privileges that worked to the detriment of the party that was suing you. It stayed the prosecution of the suit, and it made things more expensive and difficult for the party suing you. Perhaps some of that helped you gain a satisfactory settlement and dismissal of the suit.
You accepted the privileges that came to you by filing bankruptcy. You also have to accept the detriment that arises from the filing. You can't have the milk without buying the cow.
Cristina M. Lipan agrees with this answer
A: There are ways you can dispute specific items but most likely not the actual Bankruptcy reporting. Most creditors will understand if you explain to them why a Bankruptcy is on your credit report. I am told that most creditors actually like it when someone recently filed bankruptcy if their income is sufficient for whatever the credit needs are. This might seem counter intuitive but it's because you can only file every 8 years so there is no risk of them filing another BK... and most of the time they now have no debt. The obvious problem is you have to pay a higher interest rate but this can sometimes be limited to one or two years.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
