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The Importance of Listing Your Creditors in Bankruptcy

Bankruptcy law requires all debtors to fully disclose all of their assets, debts, income and expenses. You must also file a list of all of your creditors, including any family members or friends that have borrowed money from you.

It is crucial to list all of the parties that you owe money to in your bankruptcy filing so that they will be provided written notice of your case. When a creditor is provided notice of your Chapter 7 or Chapter 13, they are prohibited from taking any collection actions against you. In contrast, if a creditor isn’t given notice of your filing and is unaware that the automatic stay is in place, the creditor will likely continue its collection activity against you.

You must also include all of your creditors in your Chapter 7 or Chapter 13 because the law requires that all creditors with the same type of debt (priority, secured or unsecured) be treated the same. This means that you cannot pay one credit card bill so that you can keep it while discharging all of your other credit card debt. Failure to list all of your creditors, especially if you intentionally omit certain ones, can result in serious issues in your bankruptcy filing.

Finally, when you file your bankruptcy pleadings, you sign them under penalty of perjury. If you intentionally omit financial information, the court can find you guilty of perjury. We can help you cover all of your finances and ensure that you make full disclosures and that the automatic stay provides you comprehensive protection.

Contact a Bankruptcy Attorney at Faro & Crowder, PA

If you have questions about filing for bankruptcy protection, we have the answers. Call us today to schedule your initial consultation.

The information on this blog or any blog is not intended as, and should not be taken as, legal advice.

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