Individuals must list all debts when filing for bankruptcy. A person cannot choose which debts to include and which to leave off in this situation. According to a Bankruptcy Attorney In Puyallup Wa, this includes all secured claims, all priority unsecured claims, and nonpriority unsecured claims. Why is this important?
When a person files for bankruptcy, he or she signs papers stating all debts listed are true and correct. Furthermore, these papers outline the legal consequences of filing a false statement. It is considered a federal crime to lie on these documents, thus all debts must be listed. In the event a debtor feels he or she should not include a debt, it’s best to speak to an attorney to find a solution to the problem.
A failure to include a debt may be nothing more than a mistake. In this situation, the debtor would be responsible for paying the debt even when all others are discharged. These are situations where a debt may be added after the initial paperwork has been filed with the court, but certain deadlines must be met if they are to be included.
The deadline to add the debt depends on the type of debt. For example, a person only has a short period of time to add a debt to the bankruptcy filing if the creditor may be able to claim the debtor took certain bad-faith actions to acquire the debt. More time is provided in those situations where the creditors will not be receiving any funds as part of the bankruptcy proceedings, but there are still deadlines here that must be met. Speak to the attorney to ensure no deadline is missed for this reason.
Turn to a Bankruptcy Attorney In Puyallup Wa for assistance in filing for bankruptcy to avoid situations such as these. It’s always best to list all debts in the initial filing. This may not be possible, however, as a person may not know they owe a debt, the debt is no longer listed on the credit report and the debtor has forgotten about it, or it has been sold and the debtor doesn’t know who to pay. The attorney can be of help in these situations and more.