Filing Bankruptcy? Schedule ALL your Creditors
The bankruptcy court requires a debtor to disclose all of his or her debts, assets, income and expenses. You must also file a list of every person or entity that you owe money to. This list is commonly referred to as the “creditor matrix.” Even friends and family that have loaned you money should be included on the creditor matrix. If you fail to list somebody that you owe money to, it can cause problems in your case.
All of the parties listed on the creditor matrix are provided written notice of your Chapter 7 or Chapter 13 filing. This is important because when a collector or creditor receives this notice, all collection activities should stop. The automatic stay goes into effect when your petition is filed and it prohibits most types of collection activity from continuing against you. This includes harassing telephone calls, garnishments, lawsuits and other similar forms of collection tactics. Thus, if a collector or creditor is not provided notice of your bankruptcy filing, its collection efforts will continue because it is not aware that the automatic stay is effective.
Bankruptcy law also requires you to include all of your creditors in your case because all creditors holding the same type of claim (priority, secured or unsecured) are required to be treated similarly. This means that you cannot pay one of your credit card bills in order to keep that card while eliminated the debt charged to all of your other credit cards.
Finally, when you sign your bankruptcy pleadings, it is done under the penalty of perjury. This means that any failure to make a full financial disclosure in your case can be considered an act of perjury by the court. This type of allegation is usually only made in severe cases, but it is always better to be safe.
Our legal team will help ensure that you make the required financial disclosures in your Chapter 7 or Chapter 13. It is our goal to assist you with discharging the maximum amount of debt possible and to get the financial fresh start you need.
If you are considering filing a bankruptcy and you need help determining which type of filing would be best for you, contact Fitzgerald Campbell to schedule an appointment. We do not offer just one debt relief option, we don’t push you in one direction. If bankruptcy right for you, we will tell you. If it’s not, we will tell you that. If bankruptcy is your get out of debt plan, it needs to be done right. It needs to be in the hands of experienced lawyers who have been there before. Contact us today!
Posted in: Bankruptcy