Do I have to list all of my debts in my bankruptcy filing?
Get Legal Help Today
Find the right lawyer for your legal issue.
Secured with SHA-256 Encryption
Mary Martin
Published Legal Expert
Mary Martin has been a legal writer and editor for over 20 years, responsible for ensuring that content is straightforward, correct, and helpful for the consumer. In addition, she worked on writing monthly newsletter columns for media, lawyers, and consumers. Ms. Martin also has experience with internal staff and HR operations. Mary was employed for almost 30 years by the nationwide legal publi...
Published Legal Expert
UPDATED: Oct 21, 2024
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
UPDATED: Oct 21, 2024
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
On This Page
When filing for bankruptcy, a person is required to list all debts on the appropriate forms. Failure to do so can negatively affect a bankruptcy filing, in some cases resulting in the filing being dismissed and in other instances causing any debts not listed to simply not be discharged.
Effects of Failing to List Debts
In some cases, failing to list certain debts in a bankruptcy filing will prompt a judge to deny the discharge or dismiss the case if he or she suspects the filer tried to hide or conceal the debt from the court. Concealing a debt in your bankruptcy could be considered fraud and could lead to criminal penalties. In other instances, a bankruptcy may go through with any debts not listed not being discharged. In these cases, the debtor is still responsible for paying those debts.
Find the right lawyer for your legal issue.
Secured with SHA-256 Encryption
What if I Want to Pay the Debt?
If a particular omission on a bankruptcy filing was not accidental and the debt was not included because it was intended to not be discharged, a person will still need to inform his or her bankruptcy attorney and the court of the omission. Even when a debt is decidedly kept out of a bankruptcy, under the rules, it must still be included in your filing. It is possible, however, to sign and file a reaffirmation agreement that allows a debtor to keep and pay the full value of the debt. Although it may seem odd that you want to “keep” a debt, this may be the best option for a debt like a car note where a person wants to keep the car and protect a co-signer from collection actions.
Are There Exceptions?
The general exception to the requirement that all debts be listed in a Chapter 7, no-asset filing. When a person files Chapter 7 bankruptcy without assets, some courts will view the omission of debts as a technicality because the debt would have been discharged had it been listed in the original bankruptcy filing.
What to Do if I Failed to List a Debt
If you accidentally do not list a debt, notify your bankruptcy attorney immediately and review your options. You may choose to go ahead and pay the debt you owed. This option, however, generally defeats the purpose of filing for bankruptcy. In some cases, depending on where you are in the bankruptcy process, your attorney may be able to file a petition to reopen or to amend your filing to include the omitted creditor. This option prevents you from wasting any debt-relief opportunities provided through the bankruptcy filing.
The bottom line is to include everything out of caution. Errors and omissions on a bankruptcy filing tend to create more problems than they solve. Filing for bankruptcy is a complicated process and it is always best to consult with a qualified bankruptcy attorney on how best to proceed.
Find the right lawyer for your legal issue.
Secured with SHA-256 Encryption
Case Studies: Failing to List Debts in Bankruptcy Filings
Case Study 1: Concealed Debt
In a recent bankruptcy case, John Doe intentionally omitted a significant debt from his filing. He believed that by hiding the debt, he could avoid its inclusion in the bankruptcy and subsequent discharge.
However, the court discovered the omission and suspected fraudulent intent. As a result, John Doe’s bankruptcy filing was dismissed, and he faced potential criminal penalties for concealing the debt.
Case Study 2: Undischarged Debts
Mary Smith filed for bankruptcy but failed to list a few minor debts in her filing. Although her bankruptcy was approved, the debts she did not include were not discharged.
As a consequence, Mary was still responsible for paying those debts even after her bankruptcy case concluded.
Case Study 3: Reaffirmation Agreement
In a bankruptcy case involving Mark Johnson, he intentionally left out a debt with a co-signer from his filing. However, he informed his bankruptcy attorney about the omission and took the necessary steps to address it.
Mark signed a reaffirmation agreement, which allowed him to retain the car associated with the debt and protect his co-signer from collection actions. This alternative approach ensured that Mark took responsibility for the debt while still benefiting from the bankruptcy filing.
Case Study 4: Chapter 7 No-Asset Filing
Samantha Davis filed for Chapter 7 bankruptcy without any assets. Accidentally, she omitted a debt from her original filing.
Since the debt would have been discharged had it been listed, the court considered the omission a technicality. Samantha’s bankruptcy case proceeded without adverse consequences, and the omitted debt was effectively discharged.
Find the right lawyer for your legal issue.
Secured with SHA-256 Encryption
Mary Martin
Published Legal Expert
Mary Martin has been a legal writer and editor for over 20 years, responsible for ensuring that content is straightforward, correct, and helpful for the consumer. In addition, she worked on writing monthly newsletter columns for media, lawyers, and consumers. Ms. Martin also has experience with internal staff and HR operations. Mary was employed for almost 30 years by the nationwide legal publi...
Published Legal Expert
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.