What Does a Motion to Expunge Mean During Bankruptcy?

Expungement in Bankruptcy

• The Merriam-Webster dictionary defines the verb expunge as to strike out, eliminate or completely efface. In some cases, a bankruptcy proceeding will expunge all or part of your debt, but since that is a normal part of the proceeding, you usually don't need to file a motion for that purpose. You do have to file a motion, however, if you want the entire proceeding nullified and removed from the public record. While there are reasons to have a legitimate proceeding expunged, the most common reason for filing such a motion is because the proceeding was fraudulently initiated.
  
  

Expunging the Court Record

• To expunge a bankruptcy proceeding from the public record, you have to file a motion in the court in which the proceeding took place. In many jurisdictions, you can do it without the help of an attorney by filling out the required paperwork and filing it with the clerk of the court. You'll probably be required to attend a hearing to explain the reason for the expungement, and you'll also be required to present proof of your identity. If the motion is successful, the court will erase the filing from its records.
  
  

Fraudulent Bankruptcies

• It isn't difficult to file for bankruptcy, and some identity thieves use it as a strategy to gain extra mileage from a stolen identity. For example, they may rent a house, posing as the victim, and when the rent comes due, file bankruptcy to avoid eviction. Even if no one shows up for the bankruptcy hearing and the case is dismissed, credit reporting agencies retain a record of it, and the damage to the victim of the theft can be devastating. Such a victim may not be able to get a loan, and may have trouble securing employment and even a place to live.
  
  

Expunging the Bankruptcy from your Credit Report

• Once the credit reporting agencies have noted your bankruptcy filing in their records, it will lower your credit score for as long as it remains there. However, you have the right under the Fair Credit Reporting Act to demand that they erase it once it has been expunged from the court records. They must, after receiving written notification from you that there is an error in your credit report, investigate the error within 30 days of the receipt of that notification. According to United States Code, Title 15, Chapter 41, Subchapter III, Section 1681i, they must eliminate any information that is found to be "inaccurate, incorrect, erroneous, misleading or outdated."