Bankruptcy and Credit Reporting Errors

Credit Reports, such as those from Transunion, Equifax, and Experian, greatly affect one's finances, credit, and life. But, it is often overlooked, could the credit reports have errors? This post will cover this topic, especially when contemplating Bankruptcy.
First, it is possible to have errors in any system, especially credit reports. According to the Federal Trade Commission, one in five people have an error on at least one of their credit reports. However, the key is understanding "what is an error?" and "how do you fix it?"
What is a Credit Reporting Error?
Credit report errors can include:
- the wrong name or address on an account
- an incorrect date you made a payment
- accounts with the wrong balances
- mixed credit files and identity theft accounts
- being mistakenly reported dead (common for family members with similar names)
How do you Dispute an Error at a Credit Reporting Agency?
There are a few ways in which to dispute an error:
- Mail:
- Equifax:
Equifax Information Services LLC
P.O. Box 740256
Atlanta, GA 30348 - Experian
P.O. Box 4500
Allen, TX 75013 - TransUnion LLC Consumer Dispute Center
P.O. Box 2000
Chester, PA 19016 - Phone:
- Experian (888) 397-3742
- Transunion (800) 916-8800
- Equifax (866) 349-5191
- Online Resources can be found here:
- More information about Equifax’s dispute process can be seen here: https://www.equifax.com/personal/help/credit-report-dispute-process/
- More information about Experian’s dispute process can be seen here: https://www.experian.com/blogs/ask-experian/credit-education/faqs/instructions-for-disputing-by-mail/ and disputes can also be uploaded here: https://www.experian.com/consumer/upload/
- More information about Transunion’s dispute process by mail can be seen here: https://www.transunion.com/credit-disputes/dispute-your-credit/mail-or-phone
What to say?
Any mailed or uploaded request should ask the credit bureau agency to remove or correct the inaccurate or incomplete information in their report. Include the following:
- your complete name and address
- each mistake that you want fixed, and why
- copies (not originals) of documents that support your request
- a copy of your report (circle the mistakes you want fixed),
Why is it important for Bankruptcy?
Bankruptcy is an/one option is a few possible solutions to improving someone's financial situation.
If a consolidated loan can reduce interest rates and make payments more manageable, the credit report could directly affect eligibility for the loan and the interest rate.
Similarly, if one item is needed to be purchased on credit, and that item has an income producing potential to improve your financial situation, the credit report could be holding you back from more income. What could that one item be?
- Power Tools for a Construction Business
- Cement Equipment for a driveway business
- Dump truck for a landscaping or construction job
- Power Washer for a Power Washing Business
- Trailer for a Detailing Car Company
- Trailer for a Trash Pick-up Service
- Vehicle for Food Delivery or Passenger Transportation
- Computer for Remote Working Opportunities
- Vending Machine for a stand alone company or as an added source of revenue for a business
- Points/Rewards Credit Card to receive a percentage discount or small discount
- Kennels for a Pet Boarding company
- Sewing Equipment for hemming or upholstery services
The Sky is the Limit!
In Bankruptcy, the Credit Report creates the "targets" in which you would be seeking bankruptcy relief. The amount of debt may affect the monthly payments. Thus, you would desire a credit report that is as accurate as possible.
If I are considering Bankruptcy, who should I speak with a Bankruptcy Attorney.
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