A Bankruptcy Lawyer in Conroe Discusses the Importance if Listing Creditors During Bankruptcy Proceeding
Embarking on Chapter 7 or Chapter 13 bankruptcy is a highly-emotional experience for many people. Some view the process as a sign of defeat, while others view the situation as an opportunity to start anew. Your bankruptcy lawyer will encourage you to adopt the latter view, as the founders of our nation were adamant that bankruptcy proceedings be included as a part of federal law. If you are considering bankruptcy, a bankruptcy lawyer can help you better understand the process, as well as the information you are required to disclose in order to progress with your case.
Disclosure of Creditors The United States Code plainly states that debtors have a duty to disclose every creditor known to them at the time of the bankruptcy proceeding. Failure to disclose a certain creditor to the court amounts to fraud and could cause bigger problems for you than your outstanding debts. If you are having difficulty compiling all the information for each of your creditors, your bankruptcy lawyer can help you gather the information you need.
The rules also contain a duty to disclose any payments made to creditors prior to your bankruptcy. While this may seem a curious request, your debts are arranged in order of priority. For instance, secured debts like homes, cars and boats take priority over unsecured debts like credit cards or personal loans between family members. Paying off family members prior to filing for bankruptcy could be seen as an unfair asset transfer in violation of the rules of debt priority.
Contact Us Today If you are considering bankruptcy, a bankruptcy lawyer in Conroe can help you better understand the rules and requirements. For more information, please call the Peterson Law Group today at 936-337-4681.
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