Public Records Could Plague Your Credit For The Better Part Of A Decade
Even if you repay the money you owe, public records with negative information typically remain on your credit reports for seven to 10 years.
Public records with adverse information may even occasionally wind up on your credit reports by mistake. According to a 2012 study by the Federal Trade Commission, one out of five consumers had an error on at least one of their three credit reports that was corrected by a credit reporting agency after it was disputed.
The good news is, in some cases, you may qualify for relief.
Experian®, Equifax® and TransUnion® have begun removing unverifiable public records from about 12 million credit reports.
The three major consumer credit bureaus recently adopted stronger public record data standards for consumer credit reports, requiring tax liens and civil judgments to include your name, address and either Social Security number or date of birth.
Millions of old public records dont contain all of this information, so the credit bureaus are removing them from consumer credit reports.
Theyre also removing medical collection accounts that have been or are being paid by insurance.
If you spot an error or an unverifiable public record that doesnt belong on your credit report, Credit Karma may be able to help you dispute it. And if all else fails, we can show you ways you can rebuild your credit.
Just remember, youre not alone. Were here to help.
So How Do I Get Rid Of Negative Public Records
Unfortunately, its not that easy.
The three major credit bureaus wont accept certain poorly sourced public records, and theyre proactively removing some tax liens and civil judgments if they cant verify whos responsible for repayment, along with some recent medical debts.
But theres no legal recourse for you to remove other, accurate public records from your credit reports.
If you spot an error on your TransUnion® credit report, Credit Karmas Direct Dispute tool may be able to help you challenge it. Since 2015, weve helped members remove more than $7.9 billion in erroneous debts.
You may also dispute errors on your Experian® and Equifax® credit reports directly through their websites.
The Legal Process Of Removing Bankruptcy Errors
You can challenge any error you find on your credit history or bankruptcy filings. They must be removed if the credit bureau or reporting agency cannot prove they are legitimate.
To prove there is a mistake, you need to follow these steps:
Proving bankruptcy fraud can be drawn-out and time-consuming. A legal advocate can help reduce stress and save time throughout the process.
How To Remove Bankruptcy Lawsuits And More From A Credit Report: A Step
A while back, I reached out to Corey Gray to see if hed 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 recordsand how to remove them from a credit report.
Public records like bankruptcy, civil judgments, and tax liens have a major impact on your clients 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!
What Happens If You Cant Get A Public Record Removed
Fortunately, the NCAP has made it so you really only need to focus on how a bankruptcy impacts your credit score. On the other hand, a bankruptcy is easily the most damaging hit your credit score can take.
But dont panic. If youve filed bankruptcy, there are still ways to repair and rebuild your credit.
For example, you can commit yourself to paying your bills on time every month, establish a positive credit history by taking out a credit builder loan or applying for a secured credit card, or work with a credit repair company to see if they can help.Keep in mind that your payment history makes up 35 percent of your credit score, so make it a priority to always stay current on your monthly financial obligations.
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What Is A Credit Report
A credit report is a statement that has information about your credit activity and current credit situation such as loan paying history and the status of your credit accounts.
Most people have more than one credit report. Credit reporting companies, also known as credit bureaus or consumer reporting agencies, collect and store financial data about you that is submitted to them by creditors, such as lenders, credit card companies, and other financial companies. Creditors are not required to report to every credit reporting company.
Become An Authorized User On A Credit Card
If you dont want to take out a secured credit card, you can ask a family member or friend who has good credit to add you as an on one of their credit cards. You may see an increase in your credit score if the issuer reports the cards positive payment history to the three main credit bureaus. However, your score could take a dip if the primary cardholder makes a late payment or maxes out their credit limit.
Also Check: Do You Lose Your Car If You File For Bankruptcy
Once A Bankruptcy Is Filed There Is No Magic Wand To Make It Disappear
Bankruptcy stays on your credit for ten years whether or not you complete the process.
In re T. Khan, BAP No. CC-13-1297-DPaTa, Bk. No. 11-57609-BB
Tahseena Khan filed a chapter 7 bankruptcy but failed to file all the required documents. She spoke with debt settlement company and took their advice rather than talking to an experienced bankruptcy attorney about the affect of already filing a bankruptcy. Eventually her bankruptcy case was dismissed and she was surprised the bankruptcy stayed on her public record. She then filed a document titled, Application to Remove Debtors Name from the Court Database and the Credit Report . She urged the court to expunge her bankruptcy filing so that it would no longer appear on her credit reports or to put her case under seal. According to the debtor, these negative credit reports impacted her employment prospects in the field of energy efficiency. Specifically, she needed clean credit reports because federal and state agencies required project managers to have excellent credit before employing them.
Why Is A Bankruptcy Public Record
The simplest answer is that bankruptcy cases are also court proceedings, and all court proceedings are public record. Unless a judge orders your records sealed, they are public record. However, there are parts of your bankruptcy that do not fall under the umbrella of public record. Sensitive information, such as your social security number, are always redacted in order to protect both the information and you. Additionally, only your birth year is shown from your birth date. As we stated above, PACER allows the public to view federal court proceedings. Because bankruptcy courts are part of the federal court system, they are public record. Most PACER users are either bankruptcy attorneys or their colleagues.
Not long ago, newspapers included legal notices sections. These notices often included bankruptcy filings. However, as bankruptcy filings have become more common since the 1970s, these notices are increasingly rare. Except in the case of businesses filing for bankruptcy, many newspapers do not include personal bankruptcies. Even when newspapers report on these business bankruptcies, they often only report on large businesses that affect a significant number of jobs.
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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.
Debtor Argues Her Bankruptcy Filing Will Hamper Efforts To Obtain Employment Court Sympathetic But Does Not Remove Bankruptcy From Public Record
Think about the information you are giving this stranger: all your financial information, your childrens names, bank accounts and your social security number. You do this without the slightest guarantee that the information will be kept safe.
The court held a hearing on June 5, 2013 on the debtors Motion to Expunge . Two days later, the court entered an order denying the Motion to Expunge. She appealed, but the BAP upheld the lower courts decision She merely complains that the bankruptcy filing has negatively affected her employment prospects. While we sympathize with the debtor, recognizing that the bankruptcy filing likely hampers her efforts in obtaining employment, such information is not sensitive enough to convince us that it should be placed under seal.
The moral to this story is be very careful when filing a bankruptcy. One of our Arizona bankruptcy judges compares filing bankruptcy to open heart surgery. Would anyone, even a blithering idiot, try to perform their own open heart surgery? I hope the answer is no. Yet, time and again people file their own bankruptcy only to find out too late the consequences. Talk to an experienced bankruptcy who can explain the short and long term benefits and consequences.
We have several videos on this site. Below is one Bankruptcy stays on your credit record even if it is later dismissed.
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Be Sure To Subscribe On Your Favorite Platform Below
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.
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.
How Public Records Appear Online
Today, public records are mostly stored and accessed via the internet simply because government agencies, courts and other offices digitize their files and save them on the web. Sometimes, those same entities sell their files to information brokers, meaning your sensitive information can also be found on non-government websites.
On one hand, now that more courts and agencies are releasing public records on websites, its much easier for you to access data about yourself and others. Depending on the jurisdiction, you can often locate records on a government website for free or for a low cost.
Faq: Credit Reporting And The Bankruptcy Court
Does the Bankruptcy Court report information regarding my bankruptcy case to credit bureaus?
The Bankruptcy Court has no interaction with credit bureaus, including Equifax, TransUnion, and Experian. The Bankruptcy Court does not report information regarding bankruptcy cases to credit bureaus and does not verify the accuracy of information regarding bankruptcy cases held by credit bureaus.
How do credit bureaus access information regarding my bankruptcy case?
The Clerk of the Bankruptcy Court has a statutory obligation to maintain an accurate record of all filings received by the Bankruptcy Court. Once a case is filed with the Bankruptcy Court, that case becomes part of the Courts permanent records. With few exceptions, filings in the Bankruptcy Court are public records. This means any person or organization can view them physically in the courthouse or through a computer system named Public Access to Court Electronic Records . The PACER computer system is the most common way credit bureaus access information regarding debtors and their bankruptcy cases. More information about the PACER computer system can be found at:
Please be advised that the Bankruptcy Court has no control over what credit bureaus view on the PACER computer system and has no control over what credit bureaus do with the information they obtain through a public records search on the PACER computer system.
How long does a bankruptcy stay on my credit report?
Get A Free Copy Of Your Credit Report
Its important to check your credit report frequently at the very least annually, if not more often to catch any irregularities early on.
Under federal law, you have the right to obtain a free credit report from all three major once a year. However, because of the pandemic, all three bureaus are offering free weekly reports through the end of 2022.
You can request yours through AnnualCreditReport.com, the only free credit report website authorized by the federal government. Make sure to check your reports from all three bureaus since each one can include different information from creditors and lenders.
You can also request them by:
Mail: Download, print, and complete the request form and mail to:
Annual Credit Report Request Service
P.O. Box 105281
Other ways to get your credit report
In addition to your annual report, you can request additional free copies if:
- You were denied credit, insurance or employment in the past 60 days based on your credit
- There are sudden changes in your credit limit or insurance coverage
- Youre receiving government benefits
- You’re a victim of identity fraud
- Youre unemployed and/or will apply for employment within 60 days from the date of your request
To request additional copies, contact the bureaus directly. Heres how to do it:
For a more detailed guide on how to request copies, make sure to read our article on how to check your credit report.
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How Long Does A Chapter 13 Bankruptcy Stay On Your Credit Report
A Chapter 13 bankruptcy stays on your credit reports for up to seven years. Unlike Chapter 7 Bankruptcy, filing for Chapter 13 bankruptcy involves creating a three- to five-year repayment plan for some or all of your debts. After you complete the repayment plan, debts included in the plan are discharged.
If some of your discharged debts were delinquent before filing for this type of bankruptcy, it would fall off your credit report seven years from the date of delinquency. All other discharged debts will fall off of your report at the same time your Chapter 13 bankruptcy falls off.
How To Remove Negative Items From Your Credit Report
Your is meant to be an accurate, detailed summary of your financial history however, mistakes happen more often than you may think.
Whether its accounts that dont actually belong to you or outdated derogatory information thats still being reported, incorrect information could be bringing your score down unnecessarily.
Read on to learn how to remove erroneous information from your credit report and some tips on how to handle those negative items that are dragging your score down.
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Can You Legally Remove Bankruptcy From A Credit Report
It depends on the situation. You can remove bankruptcy from your credit report if it is untrue, misreported, disproved, or inaccurate.
You cannot legally remove bankruptcy on your credit report just because:
- You do not want it on your record
- You have a good credit score again
- Your debts are paid off
Legally, bankruptcy will stay on your record for 10 years if you filed for Chapter 7 bankruptcy or seven years if you filed for Chapter 13 bankruptcy. After that time, it should be automatically removed.
According to the Fair Credit Reporting Act , these timelines set the maximum time for a bankruptcy filing to stay on your credit report. In some cases it may be on your for less time.