It’s one of the most common questions we hear during the bankruptcy process:
“Why do you need my creditor statements? Can’t you just pull my credit report?” It’s a fair question! After all, a credit report seems like it should tell the full story of who you owe and how much. Unfortunately, it doesn’t always paint the complete picture. Here’s why those statements still matter so much in your bankruptcy case:
- Credit Reports Aren’t Perfect
Your credit report is a great starting point, but it’s not always completely accurate. Certain types of debts such as medical bills, old utility balances, or collection accounts may never show up. Other times, the debts that are listed are outdated and the accounts have been sold to new collection agencies that aren’t yet reflected on your report.
- It’s All In The Details
When we prepare your bankruptcy petition, every creditor must be listed correctly, including:
The correct name of the creditor or collection agency
The most up-to-date mailing address
If a creditor is not listed or the address is wrong, that creditor will not get notice of your bankruptcy. This essentially means they can continue trying to collect even after you have filed. Your statements help us make sure everyone is properly notified so your bankruptcy protections are working correctly to protect you.
- Some Debts Aren’t on Credit Reports at All
Certain types of debts, such as payday loans, rent balances, personal IOUs, or medical collections that never hit your credit, simply will not appear on a report. Your statements help us to fill in those gaps.
- It Protects You in the Long Run
Providing your statements isn’t just busywork, it’s about accuracy, protection, and peace of mind. The more complete and correct your petition is, the smoother your case will go! Missing information can delay your case or cause headaches later if a creditor pops up unexpectedly.
CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
At LifeBack, we strive to make sure every detail is right the first time. By sharing your creditor statements, you are helping us build a rock-solid case for your fresh start. When the time is right, or when you are ready, reach out to Minnesota’s MOST Kind and Helpful bankruptcy law firm by going now to www.lifebacklaw.com. You will be so happy you did.
