Cleveland Bankruptcy Lawyer Blog

If you live in Ohio and are planning on filing for bankruptcy then a credit report can help you in several ways. Some of these include:

1. Ensuring that all creditors are listed and that the creditor names, addresses, type of debt, balances due and account numbers are accurate. This is important so that all creditors are given proper notice and all debts are accurately listed so they are covered by your bankruptcy filing.

2. A credit report may help us find creditors that you have overlooked or forgotten about. In order for a debt to be discharged, it must be properly listed, so it is important that we are aware of all of your debts.

3. Credit reports can alert our firm to judgments or pending lawsuits against you that need to be addressed and that you may not be aware of.

4. Credit reports can also alert us to liens against your property for which we may need to seek lien avoidance in order to protect your property.

5. The credit report could alert us to co-signers on some of your debts, which are important to list in your bankruptcy.

6. If you are married, then we might find items on your credit report that you are unaware of and the report will also help us determine if you should file individually or jointly with your spouse.

7. We may find out about debts that were incurred by a prior spouse, possibly without your knowledge.

8. The credit report may alert us to mistakes on your report and you can then take action to correct the mistakes.

9. The credit report often provides information on the collection agencies representing creditors for debt collection. This allows us to notify the collection agencies of the bankruptcy so that collection efforts stop.

10. If the Internal Revenue Service has a tax lien on your property, the credit report will alert us so that it can be dealt with properly.

11. Knowing what is on your credit report can help you take steps to improve your credit and get back on track to a better credit rating for important purchases after your debts are discharged.

Our law firm can provide Clients with a three bureau credit report that includes all information for the last ten years and is specifically prepared for use in preparation for bankruptcy filing. Our firm will provide you with a copy of the report for your review. To learn more about how a credit report can help you in bankruptcy, contact an attorney now.

Posted by Justin M. Smith | Permalink | Email This Post | Comments (0)

Posted In: Chapter 13 Bankruptcy , Chapter 7 Bankruptcy , Consumer Credit & Credit Reporting

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A commonly asked question about bankruptcy is how long will it affect a debtor’s credit report. A bankruptcy filing will generally be reported on your credit report for seven to ten years. A Chapter 13 (repayment plan) will usually be reported for seven years, while a Chapter 7 (fresh start) will usually be reported for ten years. However, the actual length of time depends somewhat on the individual consumer credit reporting agency.

Your credit score will drop when the bankruptcy is first reported and then will gradually improve over time once you have received your discharge and as potential creditors begin to view you as someone with little or no unsecured debt (i.e., credit cards) that cannot file bankruptcy again for a while, rather then someone with a lot of debt that might file bankruptcy at any time.

You should also be aware that the bankruptcy court does not have any influence on your credit report and does not report any information directly to the credit bureaus.

After filing bankruptcy and receiving a discharge it is a good idea to obtain a credit report to make sure that the bankruptcy has been properly reported and that your debts are showing the proper status and/or have been removed. If your credit report has errors or discharged debts have not been removed, your bankruptcy attorney should be able to help you get your report corrected or guide you in what steps to take.

Under a recent federal law you are entitled to one free credit report per year from each of the three consumer credit reporting agencies. Each of the bureaus may have different information so you should check all three and correct any inaccuracies.

To get your free credit report you can write or call:

Annual Credit Report Request Service
PO Box 105281
Atlanta, GA 30348-5281
1(877) 322-8228

You can also contact any of the credit bureaus directly by clicking on the links below or calling the number listed:

Visit Equifax or call 1(800) 685-1111
Visit Experian or call 1(888) 397-3742
Visit TransUnion or call 1(800) 916-8800

Contact a bankruptcy attorney to learn more about how a bankruptcy may help you and how it will affect your credit.

Posted by Justin M. Smith | Permalink | Email This Post | Comments (0)

Posted In: Chapter 13 Bankruptcy , Chapter 7 Bankruptcy , Consumer Credit & Credit Reporting

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Many people in Ohio struggling with the decision to file bankruptcy are understandably concerned that it will hurt their credit.

While it is true that filing bankruptcy will lower a high credit score, if you are one of the many people that have maxed-out credit cards, several late payments or your credit score is already poor, then filing for bankruptcy protection may actually help you improve your credit more quickly.

Better yet, it will do this with the added benefit of stopping harassment by creditors and giving you a fresh start. Part of the reason bankruptcy may improve your credit score (after you receive a discharge) is that you will eliminate your high balances and improve your debt-to-income ratio. Before filing, creditors may view you as an extreme credit risk due to a lot of consumer debt, little income and the possibility that you may file bankruptcy at any time after they extend you credit. Once you have filed and recieved a discharge, creditors will view you as having little debt, more disposable income and unable to file bankruptcy again for several years all of which make you less of a credit risk. For this last reason it is important that you use credit carefully and responsibly after you receive your fresh start through bankruptcy.

On the other hand, if you currently have excellent credit then you should consult with an attorney before you fall behind on payments to discuss your options and determine if a bankruptcy alternative, such as debt settlement, might work for you. Keep in mind that if you wait until you are already behind you may reduce the options available to you.

Posted by Justin M. Smith | Permalink | Email This Post | Comments (0)

Posted In: Consumer Credit & Credit Reporting

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