We've had a number of clients come to us with a bankruptcy that has been "stubborn" or the client claims never occurred. This is a more common problem than people may think, and by default most clients believe that because the bankruptcy wasn't completed that it shouldn't be on their credit report.
Fact is, the CRA's (Experian, TU, Equifax) obtain these records from what is available in the public domain. Even so much as an initial filing becomes public record, therefore even thinking about bankruptcy is something the CRA's want to report about you to potential lenders.
In addition, those who don't complete the bankruptcy proceeding (referred to as discharged) are actually in a much worse position, from a recovery standpoint. Dismissals can be listed up to 10yrs, versus only 7yrs for a discharge. Also, many clients we've seen have a much better opportunity at recovery after a discharge.
The belief is that lenders feel that those with fully discharged bankruptcies are free of old debt and don't want to repeat old habits. Having that clean slate, likely coupled with remaining assets (house, income, etc) makes them fresh bait for high interest, but still viable credit cards and loans.
Dismissal is often the result of not completing the steps, not paying court fees, not filing the correct forms, etc. All of these actions, can hurt you worse. So, if you've already initiated the steps to bankruptcy, KnightFiCo advises those make the best efforts possible to complete the process.
Regardless though, issues in documentation and reporting do occur and KnightFiCo will work on those issues to have the record removed. We have successfully had both forms of bankruptcy removed in the past, with relatively high success rates. As time passes, new innovations and procedures are being implemented to make this possibility of removal less likely. So, the sooner you take action, the better!
If you'd like KnightFiCo to help remove your bankruptcy, sign up today!