NEW Tactics for Removing Bankruptcies from Credit Reports in 2024!

Hey credit heroes. There are new expert level tactics for removing bankruptcies from credit reports. And today I'm going to teach you how to get it done. So you better stick around. My name is Daniel Rosen and welcome to Credit Repair Business Secrets. Bankruptcies are the single most damaging item that can appear on a credit report. They make it nearly impossible to get approved for loans. They can prevent you from getting jobs. And depending on the type of bankruptcy bankruptcy it is, they can stay on your credit report for seven to 10 years. But worst of all, most bankruptcies aren't even caused by bad financial habits. No, they're the result of one unexpected major life event. And considering 63% of Americans live paycheck to paycheck, it's not hard to guess why these bankruptcies happen. In 2005, when personal bankruptcies spiked to over 2 million cases, 40, 46% listed medical related expenses as the reason for filing. Other reasons included job loss, reduced income and divorce. A bankruptcy is a very stressful situation and it's true that your finances will need to be rebuilt from scratch, but it can be done. And the first step to making a full recovery is removing the bankruptcy from your credit report. So how does this relate to us? Well, for anyone new to credit repair, bankruptcy is a legal process that allows individuals or businesses to eliminate, restructure and repay their debts under the protection of a court. There are two main types of personal bankruptcy, Chapter 7 and Chapter 13. Chapter 7 is considered a liquidation bankruptcy which involves selling all of your non exempt assets to repay your creditors. They stay on your credit report for up to 10 years after the filing date. Chapter 13 is a reorganization bankruptcy which involves creating a repayment plan to settle debts over a three to five year period. And they can stay on credit reports for up to seven years after the filing date. According to FICO scoring models, the impact of a personal bankruptcy all depends on what your credit was like before you filed. And the higher your credit score was, the further it will fall, with some high scores dropping over 200 points. Now, personal bankruptcies have steadily declined since 2005, but experts are now predicting that an increase is coming as a result of the pandemic. Court closures, PPP loans and other pandemic related relief policies slowed the bankruptcy filings, but we should expect to see a lot more soon. Here's the thing to remember. Bankruptcies are filed with the courts, not with the credit bureaus. They are public records. Public records are different than most negative items that appear on credit reports because they are about court related matters. The Courts don't actually send the public records to the credit bureaus. No. The credit bureaus buy the records from companies like LexisNexis, which collects the information from public record databases like PACER. If this sounds like a strange system, you're right, it is. But you can actually use this strange system against itself to remove bankruptcies from credit reports. Here's why this is important. When the credit bureaus receive public records from LexisNexis, they often list the furnisher of information as the recorder of deeds, the clerk of the courts, the magistrate or the municipal court. They do not listen the actual furniture. And this amounts to false reporting, which directly violates the Fair Credit Reporting act and provides a perfect reason to dispute that bankruptcy. Here's what you need to know. As always, you start the credit repair process by disputing any incorrect information that appears on the credit report. Beyond that, there's one expert level tactic for removing bankruptcies from credit reports, and I'm going to break it down into six easy steps. Step number one Sign up for a PACER account. PACER is a public records database that anyone can access for free and companies like LexisNexis use it to gather our data. I added the PACER sign up link over there to the show notes. Step 2 Contact LexisNexis and request a consumer disclosure report. Thanks to the Fair Credit Reporting act, they're required to provide you with a copy for free and I added the direct link to the report request site over there in the show notes. Step 3 3. When you have the PACER account records and the LexisNexis consumer disclosure report, compare the information in both. Look for any inconsistencies and dispute them with LexisNexis, just like you would with a credit bureau. They follow the very same rules. If you're able to remove the bankruptcy from the LexisNexis report, then your odds of removing it from the credit bureaus will increase dramatically. Dispute the bankruptcy with the credit bureaus and do this just as you would with any other item. If the bureau verifies the information, move on to the next step. Step 5 Send a simple letter addressed to the clerk of the court where you filed the bankruptcy. There's no need to get into details or specifics. Just say something simple like I have a record from your court appearing on my credit report. I've disputed the item with the credit bureaus Equifax, Experian and TransUnion, all of which confirm that the record was verified by you. Please provide the procedure in which you verify records with the credit bureaus and send this letter to the clerk of the court with a self addressed stamp envelope and your return address to make it very easy for them to respond. The clerk of the court will usually respond with a letter explaining what you already know. They do not report to the credit bureaus and now you're cooking with gas. Step 6 Make a copy of the letter you received from the clerk of the court and and send it to the credit bureaus along with a demand for deletion. It doesn't have to be written this exact same way, but it should be something along the lines of this I have previously disputed and then insert the public record name and the reference number with you and in response you verify the item is accurate stating that you have verified the information with the court. I contacted the court and their response is enclosed. It is clear they do not report to you or any credit bureau for that matter. Therefore, your initial response verifying the item with the court was either an error or a lie. Either way, the reporting requirements do not comply with FCRA 6. 1115 USC 1681 I and the information must be deleted immediately. The credit bureaus know the law and they understand that they have a potential violation if they don't remove it, so they'll typically respond with a deletion. If the bankruptcy is deleted, you'll soon be able to qualify for loans and lines of credit without dealing with the predatory high interest rates that keep people with bad credit stuck in the never ending cycle of debt. If the credit bureaus refuse to delete the bankruptcy despite your valid reason for removal, then it's time to file a complaint with the CFPB because you're entitled to fair and accurate reporting. And if you'd like copies of these public record dispute letters, you can download them free right now@creditrepaircloud.com public record dispute and here's my final point. Bankruptcy is the single most damaging item that can appear on a credit report, but that also means that removing them has the greatest positive impact on on a person's life. Disputing a bankruptcy may not be the fastest process, but success is a major step to financial recovery. So it's always worth the effort. And I'll end by saying if you want some easy tricks to boosting credit scores, check out my episode how to Delete Negative Items Instantly. And if you'd like to get certified in the dispute process and gain confidence and grow your credit repair business, check out our Credit Hero Challenge. Yours are closing soon. So sign up now@creditherochallenge.com and start changing lives.