How to Spot Credit Reporting Anomalies Before Filing

Your credit report is a tool that helps you and others assess your financial situation. It’s important to review it prior to filing for bankruptcy.

Occasionally, credit reports contain errors that muddy your financial situation.

Reviewing your report before you begin the bankruptcy process ensures that everything is correct and helps your attorney better assess your situation. Here’s what to look for when assessing your credit report for anomalies.

Look for Accounts You Do Not Recognize

Start by reviewing every account listed on your credit reports. Pay attention to collection accounts, credit cards, personal loans, and other debts you do not recognize.

An unfamiliar account does not necessarily mean someone has stolen your identity. It could reflect an old debt, a creditor using a different business name, or an account that has been transferred to a collection agency. However, anything you cannot identify deserves further investigation.

Your bankruptcy paperwork needs to include accurate information about your debts. Finding unfamiliar accounts before filing gives you an opportunity to investigate them rather than discovering them later.

Double-Check What You Owe and the Status of Your Accounts

What you owe and what accounts are still active can also be a problem. Look for discrepancies such as:

Incorrect balances
Accounts reported as delinquent after you’ve paid them
Duplicate debts
Accounts showing an incorrect payment status
Debts that should no longer appear because of their age

Do not assume that everything on your credit report is accurate simply because it came from a creditor. Compare the information with your own records, including statements and correspondence from creditors and collection agencies.

Pay Attention to Collection Accounts

Collection accounts deserve particular attention before bankruptcy. A debt may have been sold or transferred several times, which can make it difficult to determine who currently claims that you owe the money.

You should also look for differences between the original account and the collection account.

Frequently Asked Questions

Should I check my credit report before filing bankruptcy?

Reviewing your credit reports can help you identify debts, collection accounts, and potential errors before your bankruptcy paperwork is prepared. However, your credit report should not be treated as the only source of information about your debts.

What should I do if I find an error on my credit report?

You can dispute inaccurate information with the credit reporting agency and, when appropriate, the company that provided the information. Keep copies of your dispute and supporting documentation.

Can an incorrect credit report affect my bankruptcy case?

Potentially. Your bankruptcy petition and schedules require accurate information about your financial circumstances. That is why it is important to identify and investigate discrepancies before filing.

Will bankruptcy automatically remove collection accounts from my credit report?

No. Bankruptcy does not automatically erase accurate information from your credit history. Credit reporting and the legal treatment of the underlying debt are separate issues.

Do Not Let a Credit Report Tell the Whole Story

A credit report is useful, but it is only one piece of your financial picture. Your own records, creditor statements, collection notices, income, expenses, and assets all matter when determining whether bankruptcy may be appropriate.

We’ll help you review your financial circumstances and understand what information is important before filing. We’ll answer your questions about debts that appear on your credit report, including accounts that are unfamiliar or contain inconsistent information.

Do you want to make filing for bankruptcy as stress-free as possible? We can help. Contact the Law Offices of Robert M. Geller to discuss your situation and learn more about your options.