Bankruptcy should always be a last resort (see our Debt Relief Options for bankruptcy alternatives). However, if you have decided to file bankruptcy but have not done so yet, take your time and don’t rush the process – it is more important to ensure that all your bases are covered rather than make a mistake that may cost you later.

Obtain Credit Reports

You need to obtain your credit reports from the three major credit-reporting agencies (Experian, Equifax, and TransUnion). Fortunately, you can conveniently obtain all three of your reports online in only minutes at www.annualcreditreport.com

• With these three reports, you will have access to a file number and a phone number needed for accessing customer service.
• You will see the addresses for each creditor on the credit report. If it is not there, then you can call customer service to ask them to provide you with the missing information.
• When you call the bureau you can ask them to provide you with the phone numbers for each of the companies showing on the credit report.

Get Updated Information

• Call each creditor and ask them how much is owed and for the address where payment should be sent.
• If they don’t handle the account, then ask them for the name and address of the collection agency that will take payment.
• When dealing with creditors and collection agencies don’t let them bully you or upset you over outstanding balances. Just collect the information you need. All you have to say is, “Thanks. I will call your company back soon regarding this matter.” Don’t give them time for a rebuttal – just hang up. If they push the matter, then only as a last resort tell them you will be filing bankruptcy. Give them the name and number of your attorney and end the call.

Make a list of accounts

Your attorney will need the name, addresses, balances, and account numbers for eachcreditor to complete the bankruptcy papers.

If there are creditors that you want to continue paying, then it is very important at this time to tell your attorney that you want to offer reaffirming on the debt. The attorney will then send the offer to the creditors you have selected who must accept it. Then the judge must accept the offer too.

The creditors will continue reporting the balance owed and show the status “reaffirmed” on your credit report.

Once the Bankruptcy is complete

Creditors have the means and responsibility to manually update account information with credit reporting agencies. However, at this point no one is requiring creditors to do this.

When creditors don’t update account information with the credit reporting agencies, then you get an incorrect credit report that still shows you owe on the accounts in question, and that they are currently in collections or charge off status when in fact they are not.

The clear, quick way to fix this problem is to:

• Obtain a copy of your bankruptcy and discharge papers from your attorney or the courthouse. This may include a copy fee.

• Make three copies of the section of papers that list all of the creditors and collection agencies that were included in the bankruptcy – usually this is called the Schedule F.

• Forward these documents along with the discharge to all of the credit-reporting agencies requesting that each creditor included in the bankruptcy be updated to properly reflect a zero balance with the status included in bankruptcy.

• Be sure when mailing correspondence to the credit reporting agencies to include a copy of your driver’s license and mail “certified return receipt requested”. This will ensure disputes are processed with little delay.

Finally, if you have a creditor or collection agency which is not honoring your bankruptcy and continuing collection efforts, then be sure to contact your bankruptcy lawyer. Give your lawyer the name and address of the company bothering you so that he or she can send them official notice. Follow up with the lawyer if the creditor persists in harassing you. It is a violation and they can be held accountable if they don’t cease after notification of the bankruptcy.

As with all consumer issues, knowing your consumer rights throughout the bankruptcy process is essential. Taking a proactive approach at the onset of the process will help you on your “road to credit recovery”.