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LEARN HOW TO START, RUN, OR GROW YOUR CREDIT REPAIR BUSINESS

Advanced Disputing: How to Remove a Bankruptcy

By: Daniel Rosen November 10, 2020

According to the American Bankruptcy Institute, in an article published in May of this year, over 760,000 bankruptcies were filed in the US by the end of March 2020… and that was BEFORE the effects of the pandemic! 

Needless to say - as a Credit Hero - you’ve got to know how to dispute a bankruptcy and get it removed from your client’s credit report because without your help, it will leave an open wound on their credit for 7-10 years! 

That bankruptcy means too often your client’s are getting an automatic “NO!” from lenders, employers, or even landlords for years!

As Credit Heroes we’re faced with doing our best to educate our clients, to help them to remove negative information and assist them in rebuilding their lives. So if you haven't already faced the task of removing a public record like a bankruptcy, you definitely will soon enough as the effects of this pandemic ramp up. 

 


Here’s why this is important.

  1. Public records are different from most negative items on a credit report because they are specifically about court related matters such as civil judgments, tax liens, foreclosures and bankruptcies. 

That’s exactly what they are, PUBLIC RECORDS - which means they’re available for the public to see. So where do the credit bureaus get this information from?  

The credit bureaus purchase information about public records from companies like PACER and LexisNexis.  

  1. So if no one reported the public record to your credit report, why do they go out and gather these records on their own, and why is that ok?

In my opinion, it’s not ok, and this is your chance to even the playing field.

  1. There’s a problem with this type of reporting because the credit bureaus report the furnisher of information as the “Recorder of Deeds”, or “Clerk of Courts” or “Magistrate” or “Municipal Court”, which is NOT truly the actual furnisher. So, this is a case of false reporting, which is in direct violation of the Fair Credit Reporting Act and a perfect reason to remove any public record.

So here’s what you need to know to dispute a bankruptcy in 3 easy steps:

  1. Dispute the public record with the credit bureaus using our dispute wizard or our letter finder feature in your Credit Repair Cloud account. If you don’t have a CRC account, you can get a free 30-day trial at signup.creditrepaircloud.com
  2. If the credit bureaus verify the information, send a simple letter addressed to the clerk of the court where the public record was filed. There’s no need to get into specifics, just send something simple along these lines, with a prepaid self addressed stamped envelope with your return address to make it super easy for them to respond back to you… here’s what you might write:

“I have a public record from your court appearing on my credit report. I’ve disputed the item with the credit bureaus Experian, Equifax and TransUnion - all of which confirmed that the public record was verified by you. Please provide the procedure in which you verify records with the credit bureaus.”  

  1. Next, expect to get a response back from the Clerk of Court explaining they DO NOT report to the credit bureaus. Then, when you receive that , you send a copy of that response from the Clerk of Court to the credit bureaus along with a letter stating the following:

“I have previously disputed this item with you > Insert Public Record Name / Reference # < and in response you verified the item as 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 to any credit bureau for that matter; therefore your original response verifying the item with the court was either an error or a lie. Either way, the reporting requirements do not comply with FCRA § 611 (15 U.S.C. § 1681I) and the information must be deleted immediately.”  

BOOM! You got ‘em! The bureaus will typically respond back with a deletion. If not, it is a good time to file a complaint with the CFPB because you have a valid reason for removal and you are entitled to fair and accurate reporting.

You can also compare the item within PACER and if you see any inaccuracies between PACER and LexisNexis you can dispute directly with LexisNexis to improve your chances at removal.

Whatever you do, don’t give up! Keep mastering your craft, keep expanding your knowledge and keep fighting for your clients! And if you’re watching this on YouTube and have additional questions - just leave them in the comments and I’ll do my best to help!

Remember… you really are a credit hero during this time of crisis.

Recently I had a chance to interview my good friend and mentor, Alex Charfen on my Credit Repair Business Secrets podcast . If you haven’t heard the interview, be sure to listen right after this one.

During the interview he made incredible predictions about what to expect in the near future for all credit repair businesses. Not only were they exciting - and even a little intimidating - but I believe, they were accurate!

There has NEVER been a better time in history to own and operate a home based business and NEVER a better time for that business to revolve around helping people during a financial crisis!

So if you’re on the fence about starting your credit repair business… I wanna encourage you to join our upcoming Credit Hero Challenge that’s starting really soon!

Over a couple weeks, we’ll hold you by the hand and take you step by step as you launch your credit repair business! It’s a highly interactive program with LIVE coaching calls, daily mentorship, and a ton of action steps and supportive bonuses… you even get certified in three different areas!

So go check it out right now at creditherochallenge.com!

 

 

Be sure to subscribe on your favorite platform below!

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Topics: Podcast

Transcript

0:00  

According to the American Bankruptcy Institute, in an article published in May of this year, over 760,000 bankruptcies were filed in the US just by the end of March 2020. And that was before the effects of the pandemic. Needless to say, as a Credit Hero, you've got to know how to dispute a bankruptcy and get it removed from your client’s credit report. Because without your help that bankruptcy, it's going to leave an open wound on their credit report for the next seven to 10 years. That bankruptcy means too often, that your clients are getting an automatic "No!", from lenders, employers, or even landlords for years. So if you want to know how to take this massive weight off their shoulders, by removing the bankruptcy from their credit report, you better stick around! 

 

So the big question is this, how can we take our passion for helping people with their credit, and turn it into a successful business without taking loans without spending a fortune by bootstrapping it from nothing so we can help the most people and still become highly profitable? That is the question, and this podcast will give you the answer. My name is Daniel Rosen, and welcome to Credit Repair Business Secrets.

 

As Credit Heroes, our job is to do our best to educate our clients to help them to remove negative information from their credit reports and to assist them in rebuilding their lives. So if you haven't already faced the task of removing a public record, like a bankruptcy, get definitely will soon enough as the effects of this pandemic begin to ramp up. So here's why this is important. Public records are different from most negative items that appear on a credit report, because they are specifically about court-related matters, like civil judgments, tax liens, foreclosures, and bankruptcies. And that's exactly what they are - public records. Which means that they are available for the whole public to see. So the question is, where do the credit bureaus get this information from? See the credit bureaus purchase information about public records from companies like Pacer and LexisNexis. So, if no one reported the public record, to your credit report, why did they go out and gather these records on their own, and why is that okay? Now, in my opinion, it's not okay! And this is the chance for you to level the playing field. See, there is a problem with this type of reporting because the credit bureaus report the furnisher of information as the Recorder of Deeds or the clerk of the courts, or the magistrate or Municipal Court, which is not actually the furniture at all. Okay, so this is a case of false reporting, which is in direct violation of the Fair Credit Reporting Act and is the perfect reason to remove any public record. Okay, are you following me so far? So here's what you need to know, to dispute a bankruptcy and remove it from a credit report in three easy steps. First, you dispute the public record with the credit bureaus using our dispute wizard or our letter finder feature in your Credit Repair Cloud account. And if you don't have a Credit Repair Cloud account, you can get a free 30 day trial at creditrepaircloud.com/freetrial. Okay, and then next, if the credit bureaus, verify the information, then you send a simple letter addressed to the clerk of the court where the public record was filed. Now, there's no need to get into any specifics. You just send something very simple along these lines with a prepaid self-addressed stamped envelope with your return address on it to make it really, really easy for them to respond back to you. Okay, and here. Here is what you might write. I have a public record from your court appearing on my credit report. I have disputed To the item with the credit bureaus, Experian, Equifax, and TransUnion, all of which confirmed that the public record was verified by you, please provide the procedure in which you verify records with the credit bureaus. And then next, expect to get a response back from the clerk of the court explaining that they do not report to the credit bureaus. And then when you receive that, you send a copy of that response from the clerk of the court, you send that to the credit bureaus, along with a letter stating the following. I have previously disputed this item with you, and then you insert the public record name and the reference number. And in response, you verified the item as accurate stating that you have verified the information with the court. I contacted the court and their response is enclosed, it is clear that they do not report to you or to any credit bureau for that matter. Therefore, your original response, verifying the item with the court was either an error or a lie. Either way, the reporting requirements do not comply with the FCRA section 611 15 USC section 1681. And the information must be deleted immediately. And boom, you got them. See the Bureau's at that point will typically respond back with a deletion. And you have removed the bankruptcy from that credit report. And if not, then it's a good time to file a complaint with the CFPB. Because you now have a valid reason for removal, and you are entitled to fair and accurate reporting. Furthermore, you can also compare the item within Pacer. And if you see any inaccuracies between Pacer and LexisNexis, then you can dispute directly with LexisNexis to improve your chances that removal, okay, whatever you do, don't give up. Okay, this takes persistence. So keep mastering your craft, keep expanding your knowledge, and keep fighting for your clients. And remembering you really are a credit hero during this time of crisis. Okay, recently, I had a chance to interview my good friend and my mentor Alec Charfen on this podcast. And if you haven't heard the interview, you really need to listen to it right after this one. during that interview with Alex Charfen. He made amazing predictions about what to expect in the near future for all credit repair businesses. And not only were those predictions really exciting, but they were even a little intimidating. But I believe that they were accurate. And I believe that there is never been a better time in history to own and operate a home-based business, and never a better time in history for that business to revolve around helping people during a financial crisis. So if you're on the fence about starting your credit repair business, I want to encourage you to come and join our upcoming Credit Hero Challenge that starting really soon. Over a couple of weeks, I will hold you by the hand, and we will take you step by step as you launch your very own credit repair business. It's a highly interactive program with live coaching calls, daily mentorship, and a ton of action steps and supportive bonuses. And you even get certified in three different areas. So go check it out right now at creditherochallenge.com. And if you're finding value in the things I'm sharing on this podcast, click below to subscribe, okay? I don't want to miss any episodes. And if you're feeling kind, rate me and give me a review, because this is a new podcast and I can use all the help I can get. And I will see you on the next episode. So until then, keep changing lives! 

 

Hey, everybody, it's Daniel again. And really quick, I'd like to invite you to join what I believe is the best thing we have ever created inside the Credit Repair Cloud Community. And it is a challenge that we call the Credit Hero Challenge. If you're just planning out your business or you're just getting started, and you dream of having a successful business your own, so you can quit your nine to five and fire your boss and have financial freedom, or so you can add another revenue stream to your existing business, if that's your dream, you need to get into this challenge. We created this challenge to help you to create and launch your very own credit repair business. To build a proper foundation for a really successful business. This challenge is going to help you to understand the strategy, the tactics, and all the things you need to be successful at credit repair. It really is the greatest thing we have ever built, and it will change your life. So I recommend you do it right now. Stop everything, pause this audio, go online, and go to creditherochallenge.com. That's creditherochallenge.com and join the next challenge. And there's a challenge that's starting in just a few days. So go get started right now at creditherochallenge.com.

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