Creditors and Bankruptcy/Records Retention

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Expert: Regan Shinski - 6/1/2010


Question
I am inquiring how long should one hold on to their bills/statements/tax records after they have been paid. I have heard 7 years, 3 years and to just shred them after they have been paid.

Many thanks for your time.

Tony S.

Answer
Tony:

A seemingly simple question is not as simple as it sounds.  There are issues with state tax laws and state statute of limitations that come into play.  In general, the IRS audits up to three years so the "three years plus current" came from that.  However, if there is fraud, late filings, or unpaid debts, they can go back further - plus the state laws and statute of limitations issues I mentioned above.

To answer your question, the safest is to never throw them away.  In today's age of scanning that is more realistic.  However, most reasonable people adhere to a "seven years plus current" and are pretty safe.

Thanks,
Regan  

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Regan Shinski

Expertise

I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit reporting.

Experience

Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports. Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry. I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA). I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage. In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.

Education/Credentials
BA - University of Minnesota

Past/Present Clients
(private)

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