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Filers are usually hoping to get a bankruptcy discharge. That's the order that wipes out certain debts and gives you a fresh start. A dismissal is very different. It means your case has been stopped before the court granted a discharge.
Chapter 11 is the chapter used by large businesses to reorganize their debts and continue operating. Corporations, partnerships, and limited liability companies cannot use chapter 13 to reorganize and must cease business operations if a chapter 7 bankruptcy is filed.
Though Chapter 7 stays on your report for up to 10 years, the debt you discharge may go away sooner. That's because most negative accounts fall off your report seven years or so after any final payment or activity. But some Chapter 13 debts may show up on your report after the bankruptcy drops off.
Closed Without a Discharge Cases are closed without discharge when the debtor does not complete the required debtor education required as a condition of discharge. The court may also close your case without discharge if you failed the last step for getting rid of debt. Your filing may not have been filed timely.
While it's not possible to remove a legitimate bankruptcy from your credit report, its impact wanes over time until it finally leaves your report after seven to 10 years. In the meantime, you can file a dispute with the credit bureaus if your bankruptcy contains any inaccurate information.
To remove the bankruptcy before the seven or ten years elapse, you'll have to prove that the bankruptcy was placed on your report by mistake or that the bankruptcy has remained on your credit report past the statutory timeline as defined by the Fair Credit Reporting Act (FCRA).
This requirement protects consumers from having any inaccurate information on their reports that would unfairly harm their credit. But this also prevents information from being removed when it is correct. So when you have a bankruptcy case on your credit report and it's accurate, it can't be removed early.
Accurate items in your record can't be removed before the term set by law expires, which is seven years for most negative items. For example, if you missed payments on your credit card, your dispute to remove that information will be denied.