Technically, you must list all your creditors in a bankruptcy case. To knowingly not list them might be considered perjury. Perjury is a crime that can be prosecuted, but in most bankruptcy cases, forgetting to list a creditor often results in the debt not getting discharged or the dismissal of the bankruptcy case.
You are permitted to file an amendment to the list up to a certain period of time during a bankruptcy proceeding if you have forgotten about one of your creditors. A bankruptcy court is not interested in prosecuting you for honest mistakes. If the amendment is filed in time, the omitted creditor will be added to the list, and if there are no assets to satisfy the debt, the debt can be discharged.
Most bankruptcy lawyers are going to advise you to list any person who you think you might owe money, whether you have a legal binding contract or not. A creditor is any company, any person, a family member or friend you may owe money. For all practical purposes, they must be listed. It does not matter which bankruptcy type you have to file; you will need to list your creditors for all bankruptcy types.
There are two types of bankruptcies most individuals can file: Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. Chapter 7 Bankruptcy, commonly called liquidation of your assets, is normally the simplest and quickest form of bankruptcy. It is available to individuals, married couples, corporations, and partnerships. Chapter 13 Bankruptcy, commonly called a wage earner’s plan, is the second bankruptcy available to individuals. It enables individuals with regular income to develop a plan to repay all or part of their debts over three or five years.
Bankruptcy law is complicated, for example, how to properly fill out a creditor’s list. Most lay people, who are not familiar with bankruptcy laws, might have a very difficult time trying to file bankruptcy without legal representation. Bankruptcy lawyers can help you understand how the laws might apply to your particular situation.
If you need relief from the stress of debt and you live in or around the metropolitan area of Detroit, Michigan, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.
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