If you are planning on filing for bankruptcy, it is important to get a clear picture of your credit history. The information provided on reports by the main credit bureaus (Experian, Equifax, and TransUnion) will help you and your bankruptcy attorney accomplish the following:
1. Ensure that a comprehensive list of creditors, their addresses, type of debt, balances due, and account numbers are compiled accurately. This is important so that all your creditors are notified of your bankruptcy and all unsettled debts are accurately listed and covered by your bankruptcy filing.
2. A credit report can locate any forgotten creditors and debts so they can be properly listed and subsequently discharged.
3. Credit reports will list any judgments or pending
lawsuits against you that need to be addressed.
4. Obtaining credit reports can help stop collection agency harassment by providing name and contact information for the agencies representing your creditors. This allows you to notify them of your impending bankruptcy and halt their debt collection efforts.
5. Credit reports can alert you to any co-signers involved in your debts, which are important to list in your bankruptcy filing.
6. In the case of a married couple, the credit reports can indicate items that you are unaware of and assist in determining if you should file individually or jointly with your spouse.
7. You may find out about debts that were incurred by a previous spouse, possibly without your knowledge.
8. The reports can highlight any credit bureau errors and allow you to take corrective action.
9. Liens against your property will be noted, enabling you and your attorney to seek lien avoidance in order to protect your property.
10. If the Internal Revenue Service has also put a tax lien on your property it will be noted in the reports. Again, knowledge of the situation will allow you and your attorney to take appropriate action.
When contemplating bankruptcy, it is import to be aware of all of your credit history. Relying on memory may not be adequate or accurate. Obtaining copies of your credit reports will ensure that you are aware of all outstanding credit issues and allow you and your attorney to take all necessary actions so your bankruptcy filing can go as smoothly as possible.