Are Bankruptcies worse for your credit score than late payments?

It depends. A recent 30 day late payment is much worse for your credit score than a Bankruptcy that is 5 years old. Recent financial troubles are a red flag that you are more risky and less credit worthy so your credit score will go down.

Can you get Bankruptcies removed from your credit report?

Absolutely.

Here’s how a lot of people do it.

#1. You dispute the bankruptcy as “not yours” if it is not yours, or several parts of the information listed as “inaccurate” i.e. Date, Plantiff, Amount, etc…if any of these parts are inaccurate…in writing. (Please note that you have to include 3 key elements in your letter i.e. Creditor Name, Account name, Reason for Dispute, and What You Want Done.) If the bankruptcy is listed with all 3 credit bureaus, submit 3 separate letters and sign them in blue ink. The Credit Bureaus have 30 days by law to respond.

#2. When they respond, you then dispute their process i.e. Demand documentation and verifiable proof that the account is yours and fully accurate. Request original paperwork with your signature on it. State that you’ve contacted the Courthouse and have learned that the court has not reported a bankruptcy in your name to the Credit Bureau.

Request the name, address, and phone number of the staff person who verified the account so you can have your lawyer “depose” them for the lawsuit you are likely to file. Demand that unless they can prove that the account is yours and accurate they must delete it immediately.

A. The Credit Bureaus almost never obtain original paperwork from creditors who frequently do not store the information.

B. The Credit Bureaus do not get their information from the Courthouse, but rather from a 3rd party.

C. The Credit Bureaus and Creditors never want to have to pay for their staff to go testify in court.

In this step you are “calling their bluff” when they stated to you that the Account had been verified correctly according to law. It hadn’t, and the Bureaus will have 30 days to respond or delete the item.

#3. If the Bureau does not delete the item or ignores your request or does not respond within 30 days…then you got ‘em!
Send a 3rd and Final letter stating that they have broken the provisions of the Fair Credit Reporting Act, and are required to delete the item immediately. Threaten a lawsuit.

This process is how many people remove Bankruptcies from their credit score.

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