Have you seen the television commercials about the importance of reviewing your credit report annually? We live in a world where good credit is a valuable commodity. You need to ensure your information is up to date, the account histories are correct, and no one has falsely opened credit in your name. However, it is also essential to review your credit reports before filing bankruptcy.
When filing bankruptcy, you must list all your creditors and balances owed. This can sometimes be difficult if you have not received an invoice or collection notice in a long time. While debt collectors may seem to be calling you non-stop, some creditors, for their own reasons, do little to collect a debt other than marking your credit. Some figure, at some point, you will want to buy a house or a car, and the blemish on your credit is enough to motivate payment. Others may figure the balance is not worth the cost of collection or the account just slipped through the cracks.
Regardless, it does happen that you may have accounts on your credit report that you forgot about. The most aggressive creditors and debt collectors are easy to remember. They have called you repeatedly and sent endless numbers of collection letters. They may have even had their attorney contact you.
Moreover, it is easy to become confused if the original creditor sold your account to a debt buyer. When you review your credit report before filing bankruptcy, it will provide the information and clarification you need.
The Fair Credit Reporting Act allows consumers to receive one free credit report annually. Experian, TransUnion, and Equifax are the three primary credit reporting agencies, and they make it easy for you to request a free credit report online, using their secured websites. Nonetheless, if you have filed bankruptcy and then realize you missed an unpaid account, mention it to your attorney immediately. You may still be eligible to discharge the debt.
What haven’t we covered yet that is important to you? If you would like to talk about why you must review your credit report before filing bankruptcy, or need more information, please contact us.