Yes, you must list ALL of your creditors.
Debtor’s Duties : Part I
There are many benefits to filing a Chapter7 Bankruptcy or Chapter 13 Bankruptcy case – you can stop a garnishment of wages, foreclosure on your home and harassing phone calls from creditors. Not only that, but you can discharge much, if not all, of the debt that has been holding you back from new opportunities. You also get to take advantage of the Kansas bankruptcy exemptions – possibly allowing you to keep your home, car, business, retirement, etc.
However, in order to move towards this financial freedom – you will need to take the necessary steps to get there. After meeting with a Kansas City Bankruptcy Attorney at your free consultation, you will not have to do this alone. We will equip you with the knowledge, ability and confidence needed during this difficult time.
Under the Bankruptcy Code, there are certain duties that a debtor shall comply with. In this series of blogs, we will review what those duties are and how to comply. Hopefully, this will provide you with a better understanding as to why we are asking you for particular information and/or documents.
United States Code: Title 11, Section 521 – Debtor’s Duties:
“(a) The debtor shall—
(A) a list of creditors; and … “
You must provide a list of ALL of your creditors. This means not only those creditors for which you wish to discharge the debt owed, but also the gas card that you want to keep; your car loan; your mortgage company; the nice local doctor; and yes – even your dad that loaned you $1000 just to get by. Every creditor must receive notice of your bankruptcy, as well as, your intentions.
Just because you must list your mortgage company – it does not mean you cannot keep your home. They will know that you have filed bankruptcy in Kansas, but you can also let them know that it is your intent to keep the property and keep making payments. The same is true with your car loan and if you want to pay your father back the money you borrowed after your bankruptcy case has been closed – that is between the two of you. He has no legal right to collect the money, but there is also no law prohibiting you from returning it.
You will be asked at the 341 Meeting of Creditors if you have listed all of your creditors on your schedules. The answer needs to be yes. If you intentionally do not list a creditor, it may be considered fraud. Fraud in a federal case can result in not only the dismissal of your case, but also federal fines and penalties. If you accidently forget to include a creditor, let your Kansas City Bankruptcy Attorney know as soon as possible. We can amend your schedules and move forward without issue.
I borrow a saying from a colleague – “when in doubt, shout it out.” If you are uncertain if something is important or someone needs to be listed – tell us about it. It is always easier to get an answer up front than to pick up the pieces after the fact.