All Debts Must Be Listed in Bankruptcy
Often times a person wanting or needing to file bankruptcy has certain assets that he/she does not want to be in jeopardy, and sometimes even a creditor relationship that the person wants to keep in good standing. Maybe you have a debt that is owed to a family member and does not want to “bankrupt” it. These are issues that ought to be addressed in a consultation with a bankruptcy attorney.
All Debts and Details Must Be Fully Disclosed
When a person, the debtor, files a Petition for Bankruptcy, either Chapter 7 or Chapter 13, the debtor is asking the Bankruptcy Court to grant relief from all or some of their debt. In order to do this the Debtor must disclose every detail of their financial condition. The Bankruptcy code requires that all debts, assets and income of the debtor be listed in the bankruptcy petition. This does not necessarily mean that all debts will be discharged or that you can not choose to reaffirm certain debts. Speak to a bankruptcy attorney about reaffirmation of debts.
Speak to a Bankruptcy Attorney About Listing Debts
The bottom line, however, is that all debts must be listed in the bankruptcy and all creditors must be notified by the court. If a person fails to fully disclose all required information to the Bankruptcy Court, the court can dismiss the bankruptcy case and criminal penalties may also apply. If a person files a fraudulent bankruptcy petition the trustee may still liquidate assets to pay debts and the court can deny the debtor’s discharge.
Make sure that you discuss all of your concerns with your bankruptcy attorney and fully disclose all debts, all assets and all information to your attorney and the court.