When you file a Chapter 7 or Chapter 13 bankruptcy, the law requires you to fully disclose all of your assets, debts, income and expenses. You must also provide the court with a list of everyone that you owe money. This includes any family members and friends that have loaned you money.
Why is your list of creditors important? All of the creditors on the list are provided written notice of your bankruptcy filing. When a creditor has notice of your bankruptcy, all collection activities against you must stop. Conversely, if a creditor does not receive notice of your filing, the creditor will likely continue attempting to collect from you because the creditor is not aware of the automatic stay that is in place.
It is also important to include all of your creditors in your bankruptcy filing because the law requires that all creditors in the same class (priority, secured or unsecured) to be treated similarly. For example, you cannot pay one credit card bill in order to keep that card while discharging all of your other credit card debt. In fact, if you intentionally fail to list a creditor, it can cause trouble in your bankruptcy case. This means, you must list family members, friends, doctors and anyone else you owe money to.
Last but certainly not least, your bankruptcy pleadings are filed under penalty of perjury. Thus, if you intentionally fail to make full financial disclosure in your filings, the court may hold you guilty of perjury. Of course, this type of assertion is typically only made in extreme cases, but it is better to be safe than sorry! Also, there is nothing in the Bankruptcy Code that prohibits voluntary payments to your creditors after discharge.
To ensure that your bankruptcy filings are accurate, provide the legal team at DeLadurantey Law Office, LLC all of your financial records. We will work with you to file full and complete financial disclosures and to help ensure that you successfully obtain a discharge of your debt.
The “defender of the little guy,” DeLadurantey Law Office, LLC. handles bankruptcy matters (Chapter 7 and Chapter 13) in Milwaukee, South Milwaukee, West Milwaukee, and Milwaukee County, including the municipalities of Bayside, Brown Deer, Cudahy, Fox Point, Franklin, Glendale, Greendale, Greenfield, Hales Corners, Oak Creek, River Hills, Shorewood, St. Francis, Wauwatosa, West Allis, and Whitefish Bay. The firm also can handle your debt negotiations, debt relief, and mortgage loan modifications. Contact DeLadurantey Law Office, LLC by phone: (414) 377-0518. Like us on Facebook.