Bankruptcy Debts

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If you are filing for bankruptcy in Kentucky, your attorney must have an accurate record of your debts and all of the property you own.  Don’t leave property or debts out just because you intend to pay the debt after the bankruptcy or because the car is really mom’s.

Listing Debts

A Chapter 7 or 13 must include the debt:

  • address
  • account number
  • amount
  • notation of the security
  • purpose of the debt
  • notation of who owes the debt husband, wife, joint, and co-maker

After filing a Chapter 7 or 13 some creditors check your bankruptcy.  Some creditors automatically obtain your filing information in seconds electronically immediately on filing bankruptcy.  If a creditor is not listed they will continue to attempt collections.  If you are later applying for a mortgage and fail to list a debt, your mortgage company may make you pay the debt or wait months for your home while you reopen and add the debt to your case.

Bankruptcy law requires you to list all your debts whether or not you wish to repay the debt. You can keep a property by reaffirming or voluntarily paying it but you must list all assets and your liabilities in Bankruptcy.  As a lawyer, we can’t overemphasize the importance of filing on all of your debts.  For your benefit we have an online process that helps you and we provide you with a source for getting a free credit report.   Listing all of your debts even if you cosigned will save you time trouble and money.  You may want to file online so your petition will be more accurate and appointment will take less time.

Listing Property

The failure to list property means that you have no right to keep it from the trustee who will take it.  You can use an exemption to keep property you list.  If the property is titled in your name then you own it.  Even if the funds car or home belongs to Mom and Dad and they just put the deed, bank account or car title in your name to manage you own it.   Don’t transfer the property trying to fix it or fail to tell your attorney about it.  Always list the property and tell your attorney about it so you can use an exemption to keep it.  There are plenty of exemptions you can use to keep the property.  But when you fail to list the property or hide the property you lose the right to use exemptions to keep it.Filing for bankruptcy in Kentucky is not an easy decision or a process for that matter, thus if you think that you’d use a professional legal advice, give us a call for a detailed consultation.