When a bankruptcy case is filed, you state that you have listed all of your assets and creditors in the case.
Listing your creditors accurately is important in a bankruptcy because it gives notice to your creditors of the case filing.
What is most important when listing a creditor?
First, most important is the proper name and address for the creditor. Mailed notice is only helpful in stopping collections, if the creditor actually receives it.
Second, the names you have gone by to your creditors, being properly identified on the case is important. Say a creditor’s information is listed properly but the name the creditor recognizes you by is not on the case, you likely will still receive collection statements. This is an easy fix, but receiving those statements may be annoying.
Third, who owes the debt? This is important for similar reasons to number 2, as the creditors need to identify who is tied to the debt, so they stop collection efforts.
Last on the list of importance is the amount. Although a proper amount is still important, it is not end all be all. Why? This is because even if the amount is incorrect, the creditor still received notice and your information. The amount should be as close as possible, if it can be though. But what happens if a mistake was made and $1,000 was listed, but you really owe $10,000, will you be on the hook for the remaining $9,000? No. Even if the amount is incorrect, your debt with that creditor will be discharged, if the creditor receives proper notice.
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Listing your creditors properly in a bankruptcy is an important step toward discharge. Visit www.kainscott.com to speak with an attorney today. You will be glad you did!
