Why Do I Have to List All My Debts?

by Hermin Dowe on October 30, 2012


Clients frequently ask about not listing a particular debt in the bankruptcy. This is usually that first credit card that they received as a freshman in college. It has become a reminder of more carefree days and so they want to hold on to it. But yes, you must list all of your debts on your bankruptcy schedules, even debts that are non-dischargeable  such as taxes and student loans to name a couple or secured  debt which must be paid.

However, you can choose to reaffirm any debt after the filing.  Or, you can voluntarily pay a creditor after you receive a discharge. Listing of a creditor does not prevent you from paying that creditor if you so wish after bankruptcy.

Likewise, omitting a credit card from your schedules, because you want to retain the use of the card does not assure continued access to the card. Most major credit card issuers use a national data base to determine who has filed bankruptcy.  The courts also send notice to them of bankruptcy filings. The credit card companies routinely cancel cards of everyone who has filed bankruptcy, whether or not a balance is owed.

At your hearing you are asked if you have listed everyone to whom you owe money. Omitting a debt constitutes perjury which could result in your discharge being denied.

If you are having financial difficulties give us a call at 510-233-7700.  You’ll be pleasantly surprised at what we can achieve.  At Dowe Law we are committed to doing the best job for you.  Call and come in for a free assessment of your situation.



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