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How to Remove Bankruptcy, Lawsuits and More from a Credit Report: A Step-by-Step Guide

By: Daniel Rosen May 21, 2020

  1. Credit Heroes

A while back, I reached out to Corey Gray to see if he’d be interested in joining the brain trust at Credit Repair Cloud.

Not only is Corey super experienced in the credit and debt industry, but he shares the same core values that I do: the credit repair industry is all about helping others and changing lives.

When he accepted, I was thrilled. Now, I can tap into his knowledge, on-demand! One credit topic that we often discuss are dreaded public records…and how to remove them from a credit report.

Public records like bankruptcy, civil judgments, and tax liens have a major impact on your client’s credit score. By being able to remove them for your clients, you can make an immediate and meaningful difference in their financial lives.

Trust me, if you can help them with this, your customers will love you! 

Understanding How Public Records Affect Credit Scores

Every credit report includes four major categories of information: 

  1. Basic personal information such as name, address, Social Security Number, date of birth, and employment information 
  2. Open credit card accounts and lines of credit
  3. Credit inquiries that result from applying for a credit card or a loan
  4. Public financial records

This last part is often overlooked but can do the most damage for your clients.

Public records come from government documents such as federal, state, or county court records. When public financial records appear on a credit report, it usually means that a person stopped paying their debt. 

The most common public records that can damage a person’s credit score are: 

  • Bankruptcy
  • Tax lien
  • Foreclosure
  • Lawsuit or civil judgment

If a client has one of these types of records on their account, this negative information has an immediate impact on their credit - and a lasting one. 

A foreclosure stays on a credit report for seven years. Depending on the type of bankruptcy, the information could stay on a client’s credit report for up to ten years. Yeah that’s right, an entire  decade!! 

Daniel Rosen

I know from experience that people make mistakes and people have bad luck. Heck, I'm one of them! And a decade of bad credit reporting because of one doesn't seem like the punishment fits the crime.

The good news is, with the help of credit repair software, Credit Heroes™  like you can help people in your community who are bogged down by debt by helping get rid of these negative records on their credit score. 

How to Remove Public Records from Your Client’s Credit Report

The last time Corey and I talked about public records, he let me in on a little secret that I can't wait to share with you. This information will help you remove them from your clients’ credit reports and create some very happy customers…

Remember, public records are filed with the courts, NOT the credit bureaus. Actually, credit bureaus purchase public records information from third-party companies like PACER and LexisNexis. 

The fact that public records still show up on a credit report makes them false reporting, and a violation of the Fair Credit Reporting Act - and that means that means you have a good shot at getting them removed from your client's credit reports.

corey j. gray

Here’s how Corey recommends removing public records from your client’s credit report (in 3 easy steps):

Step 1: Send a letter to the credit bureaus to dispute the public record.

Our credit repair software includes over 130 dispute letter templates to save you tons of time and help you get the best results for your clients.

By law, the credit bureaus, Experian®, Equifax® and TransUnion® have to remove any public records that contain errors or are missing information such as name, address, and either Social Security number or date of birth.

If the credit bureaus do verify the information, your next move is to go straight to the source.

Step 2: Send a simple letter addressed to the clerk of the court where the public record was filed.

Corey recommends using this or a similar text for the letter:

“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 the public record was verified by you. Please provide the procedure in which you verify records with the credit bureaus.”    

Make it super easy for the court to respond back to you by including a prepaid self addressed envelope with your return address. 

At this point, you can expect a response from the Clerk of Court explaining they DO NOT report to the credit bureaus. Once you receive it:

Step 3: Send a copy of the response you received from the Clerk of Court to the credit bureaus along with a letter.

Again, our subject matter expert Corey Gray has helped us out with a sample text:

“I have previously disputed > Insert Public Record Name / Reference # < with you 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 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.”    

After receiving this letter, the bureaus will typically respond back with a deletion - If so, boom!  You just changed the life of your client and earned your Credit Hero cape! 

Deleting the public record from your client's record means they are closer to financial freedom, and peace of mind.

If they don’t delete, it is a good time to file a complaint with the Consumer Financial Protection Bureau (CFPB). Remember, have a valid reason for removal and your clients are entitled to fair and accurate reporting. 

Corey’s Pro Tip: If you’re still not seeing success, don’t give up! 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. 

How Credit Repair Software Can Help Save Time and Help More People

Learning how to remove public records from a credit report is important, because you can help more people fix their credit and get on with their lives. But I’m here to tell you, you don’t have to do this all on your own! 

Credit Repair Cloud software includes tons of tools and resources to help you make all of these processes much easier. It’s literally designed to help you help the most people and change more lives! 

You can use that newly freed-up time to build relationships and grow your affiliate network. Spoiler alert: affiliates are key to becoming a superstar entrepreneur!

Becoming a part of the Credit Repair Cloud family gives you access to a huge online library with hundreds of free resources. And, you’ll become a member of the Credit Repair Cloud Facebook community - where you can connect with inspiring business owners who’ve built successful credit repair businesses from the ground up. 

Ready to make a difference in your community and make a great living doing it? Now is your chance! Join the Credit Hero Challenge today! 



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