What Happens if You Forget to List a Creditor in Bankruptcy?

What Happens if You Forget to List a Creditor in Bankruptcy

What Happens if You Forget to List a Creditor in Bankruptcy?

If your bankruptcy is processed and completed, you won’t owe any of the debts that were discharged. If you start to notice that certain creditors are still demanding payment, you need to call your Arizona bankruptcy attorney. They can find out what debt you missed and see if they can file an amended petition. Ideally, they’ll be able to do so, and you won’t have to worry about the creditors bombarding you with threatening letters. The first thing you should do is call and set up a time to meet with one of our bankruptcy lawyers in Arizona.

You Need to Review Your Credit Report Before You File

One thing your Arizona bankruptcy attorney will suggest is that you get a copy of your complete credit report. This report will list your creditors along with how much you owe them. There will likely be other debts that don’t appear on your credit report. For example, you may owe hundreds of dollars in utility bills. You may owe your landlord a couple of month’s rent. All these things need to be included in your bankruptcy. If you don’t include them, they won’t be discharged and that’s the whole reason you filed in the first place.

You Can’t Pick and Choose Which Debts You Include

When you meet with your Arizona bankruptcy attorney, they’re going to need to know all your debts and all your assets. This way, they can get an idea of how much you owe your creditors. They’ll also need to see a copy of your recent tax records. This way, they can perform the means test and see if you’ll qualify for a Chapter 7 bankruptcy. The last thing they want to do is waste your time and money. If they truly don’t think you’ll qualify for bankruptcy, they’ll let you know. Or they may recommend that you file a Chapter 13 instead.

Your Arizona Bankruptcy Attorney Will Let You Know Which Debts You Can Redeem

There are certain debts you can keep out of your Chapter 7 bankruptcy. If you own your car, for example, you may be able to keep it. The same thing applies to your house. Everybody gets a certain amount of equity they can protect. Your Arizona bankruptcy attorney can look at your assets and help you identify their fair market value. If they fit under the umbrella, then you don’t have to include then in your bankruptcy. But when it comes to your outstanding bills, you can’t pick and choose who gets paid. For example, you may want to hold on to one of your credit cards after the bankruptcy. The problem is that the court isn’t going to let you keep one debt open while the rest of them are discharged through bankruptcy.

Call and Set Up a Meeting with a Seasoned Arizona Bankruptcy Attorney

Trying to file a Chapter 7 bankruptcy on your own can be intimidating. There are so many forms to fill out. If you miss a single question, your petition will be returned to you to fix and then you’ll have to refile. This could go on for weeks or months before your petition is finally completed and processed by the court. Rather than have this happen, you should talk to an experienced Arizona bankruptcy attorney today. If you’re having a hard time paying your bills now, imagine how hard it will be to throw away hundreds of dollars on court fees. To avoid this, just call and talk to one our Arizona bankruptcy attorneys. They’ll review your debts and credit history and give you an idea of whether bankruptcy is an option.

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