Is It Important To List All My Creditors For Bankruptcy?

Many clients want to know whether or not they need to list all of their creditors when they file for chapter 7 bankruptcy.  More plainly stated, many clients want to know what happens if you don’t list all of your creditors?  11 U.S.C. § 521 requires you to list all of your creditors.  This law also applies for chapter 13 bankruptcy.  The bankruptcy trustee assigned to your case will ask you, under oath, if you have listed all of your creditors.  Answering any question under oath falsely at your 341 meeting creates a situation where you may commit the crime of perjury.  Perjury carries with it the penalties of prison and a monetary fine.  In addition, knowingly filing a bankruptcy petition that is not accurate can cause you to lose any discharge you may receive as to any other creditors.  The Court views this action as fraud.  This is a risk you cannot afford to take.

There is good news however.  Bankruptcy doesn’t prevent you from doing business with any of your creditors in the future.  In other words, if you wish to keep paying on a debt that was discharged in bankruptcy, you can do it!  Most of the time the attorneys at Marks Law Firm recommend that you do not continue to pay on your credit cards. However, you may wish to keep your car or your house and therefore you would need to keep making payments towards those obligations.  Consult with an attorney before making any payments on a debt.

Contact Marks Law Firm to make an appointment for a free consultation to discuss your options for filing bankruptcy and to better understand how to deal with your creditors.

 

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