Daniel Rosen 00:00
Hey, Credit Heroes. OK, so a few months ago, I made a podcast episode showing how to remove a bankruptcy from a credit report. But what you need to know is that credit repair is not an exact science, and things change. And they did. So, get out a pen and paper because today, I’m going to show you the newest secret way to remove bankruptcy from a credit report. So you’d 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.
OK, before I dive in, if you are new to my podcast, be sure to click to subscribe and turn on notifications, so you don’t miss a thing. And this is new and really, really cool. I started sharing this in my podcast because I want you to always remember, you are not alone. So in every episode, I’m going to spotlight one of our new Credit Heroes inside our Credit Repair Cloud Facebook community so that you can see firsthand what real everyday people are doing as they launch and grow their credit repair business. So, today’s spotlight is on Swan J., who just met with his very first two clients. He met them at a Starbucks. And then he walked out of there with four additional clients and is well on his way to building his business. And I am super happy for Swan, who posted this as an inspiration to everyone else who is following their credit repair dreams. I’m rooting for him, and I’m rooting for all of you too. So, way to go, Swan! And if you want me to hold you by the hand as you launch your very own credit repair business, go to CreditHeroChallenge.com.
OK, let’s get into this. Now, depending on the type of bankruptcy that you’ve got, after seven to ten years, it will officially fall off your credit report. But, what if you or your client wants to remove it early? Well, removing a bankruptcy early can be life-changing because it opens up all the possibilities to things like qualifying for a mortgage and a car loan. Plus, if the bankruptcy is wiped out from your record, you can qualify for lines of credit without the predatory high-interest rates that keep people with a bad credit history stuck in a downward death spiral. So does one mistake really have to affect your life for the next ten years? No, not necessarily. Now removing a bankruptcy can be a long and tedious process. OK, it has several steps, but it is definitely worth trying. Because getting one removed is awesome!
So here’s what you need to know, bankruptcies are filed with the courts, not with the credit bureaus. And the courts don’t even report to the credit bureaus. But, they still show up on your credit report. Why is that? Well, the credit bureaus buy this information. That’s right. They purchase this information about bankruptcies. They purchase it from companies like LexisNexis, who pull the information from Pacer. And this is the key to removing it. And here’s the reason why. It is essentially a technicality. But it does work. You see, the credit bureaus often report the furnisher of information as the Recorder of Deeds, or the clerk of the courts, or the magistrate, or sometimes it’ll just be reported as Municipal Court, all of which are not the furnisher. So, this is considered a false reporting, which is a direct violation of the Fair Credit Reporting Act. And it is a great reason to remove a bankruptcy or any public record. So how can you use that technicality to remove public records like bankruptcies from credit reports?
Well, here’s how you do it. First, you need a Pacer account. OK. This is a government’s service, OK? So, you can get a Pacer account at pacer.uscourts.gov. And next, you’ll need to pull the LexisNexis report for the client that you’re working on and then compare information that you find on Pacer with what you find on the LexisNexis report. Now, everyone is entitled to a free copy of their LexisNexis report every year, thanks to the Fair Credit Reporting Act. And LexisNexis customer reps say that consumers do not need to pay for additional copies of their own reports either. Requesting a LexisNexis report online is the easiest way to get it. So you get it at consumer.risk.lexisnexis.com/request. Next dispute any inconsistency is with LexisNexis, just the same as you would with a credit bureau because they have to follow the same rules. If you can remove the bankruptcy off of your LexisNexis file, your chances of removing it from the Bureau’s credit report that increases dramatically. Now this often works even without the LexisNexis step, but your chances are way better if you are successful at the LexisNexis dispute. Now, I also always recommend removing any previous addresses or incorrect names from the credit bureaus before you proceed. Because in the next steps, the Bureau’s are going to match your clients social name and address with the bankruptcy record. So removing any personal information that is connected with the record, that further improves your chances at deletion. OK, so you have worked to remove the bankruptcy off of LexisNexis. And you’ve cleaned up any personal information with the bureaus. What’s next?
Well, the next step is to simply dispute that record with the credit bureaus. And you do this just as you would dispute any other item. And next if the bureau writes back to say that they have verified the information, you need to send a new simple letter addressed to the clerk of the court where the record was filed. Now, again, this needs to be sent to the clerk of the court of whatever court the actual bankruptcy record was filed, OK? Not to the bureau this time. Now, there’s no need to get into specifics, just simply send the clerk exactly what I’m about to show you. And be sure to include a prepaid self addressed stamped envelope and your return address to make it super easy for them to respond back to you. And this is what the letter should say. 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 whom confirmed that the record was verified by you, please provide the procedure in which you verify records with the credit bureaus and go ahead and send that off with the self addressed stamped envelope so they can respond back to you. And now that you’ve sent your letter to the clerk of the court, expect a response from the clerk of the court, the letter that they send you is going to explain that they do not report to credit bureaus. And this is your golden ticket to removing the bankruptcy. So when you get this, you want to send a copy of the response that you receive from the clerk of the court, you want to send that to the credit bureaus along with a letter, and it doesn’t have to be exact, but it should say something along these lines. I have previously disputed insert the public record name and 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 of verifying the item with the court was either an error or a lie. Either way, the reporting requirements do not comply with FCRA section 611 15 USC section 16811 and the end information must be deleted immediately. And that’s it, the Bureau’s will typically respond back with a deletion, because they know the rules, and they see that you have a potential violation if they don’t remove it. Now, if they refuse to remove it, it’s a good time now to file a complaint with the CFPB. Because you have a valid reason for removal, and you are entitled to fair and accurate reporting. Pretty awesome, right? And now you have another credit repair trick up your sleeve. And that means you are one step closer to starting or growing your very own credit repair business.
So, if you haven’t already, now is the time to take the next step by getting into our Credit Hero Challenge. It’s a live experience that has helped tons of Credit Heroes to get their first clients, to get certified in disputing, and to gain confidence as they launched their credit repair business on a solid foundation. So they can change a whole lot of lives and make a great living in the process. We’re starting the next challenge in just a couple of days. So, you want to join now before the doors close. Otherwise, you’re going to have a long wait until the next one. So, sign up right now at CreditHeroChallenge.com.
And if you’re finding value in the things that I’m sharing on this podcast, be sure to click below to subscribe. Leave me your questions and your comments below. I love to come back and read each and every one and see what everyone’s talking about and answer your questions. And if you’re feeling extra, extra excited about it, give me a review. Give me a thumbs up, tell all your friends because this is a new podcast. And these things really helped me in my mission to help as many people as possible. So, let’s make dreams come true together! And I will see you in the next episode. And until then, be a Credit Hero and keep changing lives!
Want a fast track to creating an amazing business that helps people changing lives and makes you a great living in the process? Then, I’d like to invite you to my free online training at CreditRepairCloud.com/FreeTraining. In this free training, you will learn how to get clients willing to pay you even if you’re just starting out, how to get easy credit repair results without being an expert, and how to get all the clients you’ll ever need without paying for advertising. Again, this training is absolutely free. Just visit CreditRepairCloud.com/FreeTraining.