Phoenix Bankruptcy Lawyer Help- Do I need to list all my debt when I file for bankruptcy?

We get this question so often and the answer is yes. , you really need to list all of your debt.

Where most people have a lot of heartache is when we talk about the fact that maybe a relative had loaned them money a few months before. And, they've agreed to pay them back. In fact, maybe they're even making payments to that particular relative and they really don't want to stop making that payment.

Or they have a favorite credit card that they use and maybe a store that they frequent all the time and they've been really diligent about paying on it. And, again, they don't want to disrupt that credit relationship.

Bankruptcy... it's really important to list even those people you think you may owe money to when maybe even you don't. We call those debts when we file in bankruptcy "disputed debts." We list them that way in your petition. It's extremely important to list every person.

You can make arrangements with an individual after you file and once your debt is discharged maybe to repay that debt. But while you're filing, it's important to list everything.

The reason being is that, one, bankruptcy is about accuracy and so it's really important to the court that you're being honest and forthright about all of your debt. What the court doesn't recognize and what many people do recognize is you have family members and they may be more important to us than other creditors.

In bankruptcy court, everyone's treated the same. So my mom, whom I may owe $3000 to, is just as important as the credit card company that I owe $3000 to and it will be treated the same in bankruptcy.

So it's very important to list everyone. It's important in Chapter 7 and even more important in Chapter 13. We've talked in the past about Chapter 13 and how you get to re-organize your debt. In the Chapter 13 you can repay your mom and you can repay your favorite credit card. But you're simply not going to be paying as much. You're going to be able to pay what you can afford.

Some people, not because maybe they don't want to list the debt may have simply forgotten. At that point if you've actually forgotten someone and you need to list them in your bankruptcy, it's extremely important that you contact your attorney and catch that mistake.

Let them know so they can list that bankruptcy again, in states like Arizona, if it's determined that in your Chapter 7 bankruptcy (that's the bankruptcy where you don't pay anything back) that you don't have any assets, then all of your debt is discharged.

If someone was overlooked, then you can simply notify them and say, "I did file. I attempted to notify you, which is very important, but unfortunately was unable to." But because there were no assets you as a creditor weren't harmed.

However, say for example, you did have an asset in your bankruptcy and the court says, "Well, we're going to distribute whatever it was that was found as an asset to all of the creditors." If someone wasn't listed, then they obviously didn't get a chance to get paid. So they can proceed after bankruptcy.

So again it's very important to list everyone.

We want to emphasize there's nothing wrong with paying a creditor back, even if you file bankruptcy you can do that. But the key part is to list them. Insure that you list them. And after that, you can choose to pay them back. The court won't order you to, but you can make your own decision about that.

So just like with anything else in your bankruptcy, make sure that you're correct about it and accuracy is required.