Oh yes! Harinam sankirtan surely removes all bad karma. It is said in the Caitanya Caritamrta that Haridas Thakur was known as the namacarya. Haridas Thakur would chant the holy name twenty-four hours a day. He is the authority on harinam sankirtan.
Haridas Thakur explains how it works. He says that it is just like the rising of the sun in the morning. Before the sun actually appears over the horizon, the light is already visible in the sky and all the darkness and fears of the night are gone. In the same way, even before the name is chanted purely, even when we begin to accidently or incidently chant the name without chanting it purely in the heart, already karma is being destroyed. But the holy name is doing more. Not only is the holy name purifying us from karma, but the holy name also gives us liberation from birth and death.