Ask Dr. Don By Don Taylor, Ph.D., CFA • Bankrate.com

Negative information on my credit report

Dear Dr. Don,
I was divorced in 1996. He got the truck because he used it for work. I was the primary borrower on the truck loan because my income was higher. He was a co-signer, but the divorce decree required him to pay off the loan.

In 2000 he filed for bankruptcy. He kept the truck and paid it off. My credit report, however, reflects that the auto loan was "included in bankruptcy."

I only found this out in 2002 when I applied for a credit card. When I contacted the lender by phone I got no assistance. They said that the loan had been purged from the system since it was paid off two years earlier. Can I get this negative listing removed from my credit report?
Jennifer Jinxed

Dear Jennifer,
Your ex had to list all of his debts in his bankruptcy petition. That included the truck loan. The accounts included in a bankruptcy filing are listed as such on the borrower's credit report. That listing will stay on the borrower's credit report for seven years from the date that the account was included in bankruptcy.

The lender wasn't a party to your divorce decree and doesn't have to abide by its terms. You were still the primary borrower on the truck when the loan went into bankruptcy. That means that you were still financially responsible for the loan payments along with your ex-husband.

Although the account shows that the loan was included in a bankruptcy filing, it should also reflect the fact that the truck has been paid off.

You've become a "story credit" where you need to explain to a prospective lender the story behind the bankruptcy and the divorce decree and how your ex-husband, who didn't have any choice about listing the debt, hurt your credit history. Unfortunately, credit card companies aren't sympathetic listeners, and there's no space for your story on a credit card application.

Although the listing stays on your credit report for seven years, you're roughly three years in, and the damage to your credit score decreases over time.

When negative information drops off a credit report

Dear Dr. Don,
I filed bankruptcy in 1995. Now that it has been seven years, I want it off my credit report. What can I do? Thank you for your help.
Roberto Rescission

Dear Roberto,
A Chapter 7 bankruptcy remains on your credit report for 10 years after filing while a Chapter 13 bankruptcy remains on your credit report for seven years. If you filed a Chapter 7 bankruptcy, you have to wait a bit longer before that information drops off your credit report. Once the time has passed, the bankruptcy information should be removed without requiring any action on your part. The clock starts at the filing date of the bankruptcy petition. Get a copy of your credit report after the time has passed to confirm that this information is off your report.

If seven years have passed since you filed a Chapter 13 bankruptcy petition, you can use the provisions of the Fair Credit Reporting Act to dispute the listing with the credit bureau. This Bankrate feature can help you with the dispute process.