Why a Credit Report ?

One of the many documents that we request from clients is a 3-source credit report. Many clients wonder why and here is a short explanation.

When filing bankruptcy, you must list all of your debts. In fact, you swear under penalty of perjury that you have listed all of your assets and ALL OF YOUR DEBTS. A 3-source credit report is required so we can both review and verify your debts. After all, this is your one chance to get a bankruptcy discharge (debt forgiveness if you qualify for the bankruptcy) for the NEXT EIGHT YEARS. Yes, you can generally only get a bankruptcy discharge once every eight years. By verifying your debts, we ensure that everything is listed on the bankruptcy petition.

Your credit report also provides valuable information about your accounts, such as the account number, the amount of the debt, when the account was open, as well as recent activity. All of this information is needed to complete the bankruptcy petition.
Now that we know we need your credit report to complete the petition, the next issue is why a 3-source report or better yet "What is a 3-source credit report."

There are three credit reporting agencies (Experian, Equifax, and Transunion). Each of the agencies, provides information about your credit history as well as a credit score.  Sometimes the information listed in one report may be missing in another. Also, many client have medical bills that are not reported to the credit bureau reporting agencies. Take the time to gather bills and mail and compare the bills that you have to what is listed on your credit report.

Many clients can obtain their credit reports online.  Be weary of pay subscription sites to review and have access to credit information.   Below are the websites for the 3 credit bureau reporting agencies.  Review their websites for more information.

Equifax: http://www.equifax.com/home/en_us
(800) 685-1111

Experian: www.experian.com
(888) EXPERIAN

Transunion: www.tuc.com

(800) 888-4213 (to get your credit report)
(800) 916-8800 (to ask questions about your credit report)

Some clients confess truthfully that they are afraid to see their credit scores.  Once at a 700 or above, the score may have declined due to a foreclosure, loss of job or change in life circumstances.  Don't let this fear stop you.  You get to see the score and focus on the fact that you are one step closer to your goal of filing bankruptcy.