Do I Have To List All My Debt On My Coral Springs Bankruptcy?

On behalf of Bankruptcy Law Firm of Clare Casas on Saturday, April 16, 2011.

Often people considering bankruptcy think they can “keep that one credit card that is almost paid off” when filing bankruptcy. They think it will help them rebuild credit faster, or they’re just in love with their American Express card and just wouldn’t dream of leaving home without it!

Unfortunately, you cannot pick and choose which debts to list in your bankruptcy petition. All of your debts, including credit cards and debts you owe to friends and family members (you can always pay friends and family back if you choose) must be listed on your petition.

When you sign a bankruptcy petition, you are certifying under penalty of perjury that all of your assets and debts are listed. During the 341 meeting with the trustee (also known as the “meeting of creditors”), the trustee will also ask you (under oath again) if you have listed all your debts on your petition.

As I have explained to many clients that are hopelessly enamored of a particular card (Macy’s comes to mind), it really doesn’t do any good to leave it off the petition or not tell your bankruptcy attorney about it. The majority of credit card companies routinely monitor the bankruptcy filings and credit bureaus for changes to your credit standing. If they see a bankruptcy filing, they will automatically close your account whether it’s listed or not. Better to wipe the debt out and start all over again since you’re probably not going to keep the card anyway.

We are happy to offer a free consultation in our Coral Springs or Davie location to discuss your financial picture and how quickly you can rebuild your credit again after a Chapter 7 or Chapter 13 bankruptcy. Most people have credit card offers in the mail again within a month or two of their case closing. A lot quicker than they ever thought! Find out the truth about bankruptcy today!