Q: Are creditors allowed to ask for bank statements to help with proof of hardship?
I’m working with a company I’ve defaulted on due to Covid hardship. I’ve sent everything and now they’re requesting to see my bank statements. My personal account over laps at times with my fiancée business account. I try not to let it happen. But there are times he needs me to do things for him that require it. Are they allowed to ask for bank statements?
A: Sure, they can ask, but you can refuse (unless the disclosure has been court-ordered). You should consult a bankruptcy attorney ASAP - not necessarily to file bankruptcy, but to explore all options.
Bruce Alexander Minnick agrees with this answer
1 user found this answer helpful
A:
You are attempting to resolve a claim that a creditor has with you. They've asked for some documents which you've provided, and now they want bank statements. Are they allowed to ask for bank statements?
Of course they can ask for them. Creditors ask for bank statements all the time to help them make business decisions regarding their customers and/or debtors. Are you required to provide them? No, you are not. The result of you not providing the statements will likely be that the creditor will not accept your settlement offer(s) and will demand 100% or very close to 100% of the debt to avoid further action. Remember, they don't know you except what is on paper and in their system. They have no way of evaluating your ability to pay the debt except by the records that you furnish. There's no reason that you cannot enclose a letter explaining transactions that might be out of the ordinary (your fiance's business. )
Its your choice to co-operate, or not.
Bruce Alexander Minnick agrees with this answer
1 user found this answer helpful
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