11 Sep Credit Reports Before You File Bankruptcy
I insist that I see my clients’ credit reports before every bankruptcy I file. I prefer to see all three credit reports as they contain valuable information that can help us prepare a better bankruptcy and determine if a bankruptcy is possible. The information contained about an individual’s debts and assets on the reports are very important. Not only is this a valuable tool for a bankruptcy filing but it would be real helpful if an individual was filing for divorce.
The credit report contains the following information:
- A list of creditors with their addresses balances and account numbers. It is important to note that it does not contain everybody that an individual owes. Not all creditors report to the credit bureau.
- The day the account is opened, which some people mistakenly think is the day all the debt is incurred.
- The monthly payment amount and the past due amount (generally that is usually only for secured creditors) and the length of the loan.
- The responsible party. Is it just the one party on the debt? Is there a third person responsible? Is there an authorized user? This helps determine the impact the bankruptcy may have on third parties.
- The Experian report often gives you a 2 year monthly balance history. This information is important in determining if there are cash advance issues and other potential problems.
- The Trans Union report shows payment history. Again this may be helpful in locating certain problems.
By reviewing all three credit reports a wealth of information can be learned or help an individual to refresh their memory leading to a better and more complete bankruptcy filing.
I prefer my clients to go and obtain their credit reports from www.annualcreditreport.com This is free and easy to read. It is provided free by the credit reporting agencies. Everyone is entitled to receive one free credit report from each agency once a year. You can obtain the report through the web or by phone. (800-821-7232. This is a much better tool then free credit report.comwhich is not free. I like the annual credit reports commercials better.
The information contain in your credit report is so valuable that I prefer that my clients bring one to their intial consultation.
Bankruptcy Law Network (BLN)
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