BANKRUPTCY REPORTS OUTLINE

2007-05-02 10:04:19

( Financial )



Court Records and Credit Report

Running bankruptcy reports as part of the process of evaluating credit history of loan applicants is a good step to determine their history of financial management capability. It helps lenders assess how efficient is the loan applicant in managing his finances. Bankruptcy reports form part of court records filed for each State in the United States of America. Courts usually file bankruptcy reports to accredited credit reporting agency. However, not all three accredited credit reporting agencies in the country have copies of these bankruptcy reports. Thus, lenders have to search bankruptcy reports through court records to determine if loan applicants have filed bankruptcy in the last seven years.

Data in Bankruptcy Reports

Information found in bankruptcy reports include the name of the debtor, address, date of filing, court where the bankruptcy was filed, case number, and type of bankruptcy filed. An outline of this information is included in a bankruptcy report.

Outline of Bankruptcy Reports

Background, business analysis, financial analysis, court proceedings and business position are the content of formal bankruptcy reports. A background of the company that filed for bankruptcy introduces the report which covers information on its history and the explanations why it filed for bankruptcy.

The analysis of the business shows the products and services offered by the company. It also shows its market outreach as well as the strengths and weaknesses of its products and services. It highlights the history of the performance of sales of the company’s products and services.

Financial analysis discusses the debt situation of the company. It shows the various borrowings of the company including its terms and conditions. It covers an analysis of the company’s credit lines prior and after bankruptcy which include respective risks involved in these credit facilities and how it will affect the future performance of the company.

The section on court proceedings provides information on the court that heard the bankruptcy case, date of filing, disclosure of filing, proposed plan of reorganization of the company and type of bankruptcy filed. It highlights the general information relevant in the court proceedings.

Bankruptcy reports show the business position of the company in terms of recovering from bankruptcy to show creditors and the court that it has the potential to recover from its financial debt. However, the report also shows the risks or environmental factors that can hamper the recovery of the company.


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