Tuesday, January 19, 2010

Do I have to list every debt I owe in my Chapter 7 bankruptcy case?

Yes, you must list every debt that you owe when you file a Chapter 7 bankruptcy case.  The law requires that you list all of your debts and all of your assets.  As a debtor, you have a duty to provide a full and complete picture of your financial situation.  You cannot pick and choose which creditors to list. 

Your petition is signed under penalty of perjury.  Intentionally failing to list a debt can result in criminal charges.  While this is rare, it is certainly a reason to make sure that you list every creditor that you know you owe.  In addition, failure to list a creditor can be used against you in a creditor’s effort to deny you a discharge. 

After you file your case, you can choose to repay any debt that you list in your case.  For example, you can continue paying for your house or car or other secured debt.  Generally, you will sign an agreement with the secured creditor to continue paying their debt.  You can also pay an unsecured debt after you file your case.  However, we generally advise against signing any paperwork requiring you to repay an unsecured debt. 

Our Birmingham and Tuscaloosa Bankruptcy lawyers will run a credit check to make sure that all debt being reported is scheduled in your case.  It is important for you to bring all of your bills into the office so that we can cross check them against the credit report.  You should also bring a copy of any lawsuits or collection letters.  Please remember that you will not receive a discharge for any debt you fail to list.