No one wants to fall behind on their bills and dodge phone calls from their creditors. Even individuals who are financially responsible and wealthy encounter situations that cause them to become delinquent on their accounts. If you are not sure of how you can get control over your circumstances, you may want to consider bankruptcy in Orlando.
Bankruptcy requires you to disclose all debts, even those that you may not remember or believe belong to you. By listing your debts, the courts can notify your creditors. By law, they have the right to know about bankruptcy filings so that they can protect their interests and your rights. Any debts you forget to include in your filing can come back to haunt you.
What happens when debts are left out?
People sometimes forget to include debts when they file for bankruptcy. There is just so much paperwork to review and complete that is not uncommon for individuals to forget about some debts. Others intentionally do not add all debts to their filings. When it comes to bankruptcy, it does not matter if there was intent or not, the omission of financial obligations is perjury.
It is important for you to include every single debt you have, even those that might not be dischargeable in bankruptcy. Once filed, the courts grant an automatic stay on all collection activities. Overlooked creditors may continue their collection activities, unknowingly violating your bankruptcy rights. Also, in Chapter 13, a payment plan is established for all included debts. Unincluded creditors can resume collection activities after Chapter 13 is discharged. In Chapter 7, collection attempts on unincluded obligations can resume after the bankruptcy is discharged, but creditors can only go after nonexempt assets.
There is recourse for unintentional mistakes. You should always review your paperwork and debtor mailing list several times before filing. If you realize that you forgot to add a creditor, you must notify the courts immediately to avoid adverse actions.