The Importance of a Credit Report

by Sherry Ellis in Bankruptcy
Our firm strongly recommends that each of our clients filing for bankruptcy obtains a credit report for the reasons listed below.  If you are married, we recommend obtaining credit reports for both you and your spouse. Obtaining the credit report helps us get accurate creditor names, addresses, types of debt, balances due, and account numbers. Through your credit report, we may find creditors whom you have overlooked.
For a debt to be discharged, it must be listed in your bankruptcy pleadings, so it’s important that we find out about all debts. Credit reports can alert us to judgments against you. Credit reports can alert us to liens against your property, and the need to seek lien avoidance under 522(f), thus helping you protect your property in some cases. We may find out about co-signers to some of your debts, which are important to list in a bankruptcy. If you are married, there may be surprising items on your credit report or your spouse’s, and the reports can help us determine whether you should file individually or jointly. We may find out about debts created be a former spouse, who may have forged your signature to obtain credit. Credit reports can alert us to mistakes on your credit record.  The report will list the names and addresses of all three major credit bureaus that you can contact to correct any mistakes or provide updated information. Credit reports often contain the named and addresses of collection agencies representing creditors, and we can notify these collection agencies about the bankruptcy so that collection efforts stop. If the IRS has a tax lien on your property, the credit report will alert us so that it can be dealt with properly. Knowing what is on your credit report can help you get credit approval for important purchases after your debts are discharged. Not every creditor reports debts to a credit bureau, so your credit report will not list all debts. You should be sure to let your attorney know about all debts you are aware of.

Sherry Ellis Law, PLLC