A common question I receive from clients is whether they must include all of their debts or all of their assets in their bankruptcy. The short answer is yes, you must include all debts and all assets. Many would like to keep a credit card out of the bankruptcy because they have had it for an extended period of time or due to the fact that they don’t have a balance and have consistently paid the balance in full. However, even though debts such as credit cards that have a zero balance are generally not included in the bankruptcy filing, the credit card company will be notified of your bankruptcy filing through the credit reporting bureau and they will terminate your credit line at that point.
Likewise, you must disclose all of your assets to the bankruptcy court. Sometimes people tell me that they don’t want to include their car or their house in the bankruptcy. While you may elect to keep your car or keep your house, you must always disclose the car or the house as an asset that you own. Merely disclosing that you own a car or own a house does not mean that you are going to surrender that particular asset or “lose” that asset in the bankruptcy.
It is important to remember that once your bankruptcy Petition has been drafted, that you are signing it under penalty of perjury. That you are attesting that the information included in the bankruptcy documents is not only accurate, put complete and that their are no omissions. Failure to include all of your assets could result in the Court revoking your discharge down the road.
In almost all cases we can protect what you own through the application of Arizona’s exemptions statutes and most people lose no property through the bankruptcy process. It is important to disclose all assets to your attorney so that the bankruptcy documents that are filed with the Court are complete and truthful.
The integrity of the bankruptcy process is based upon complete disclosure. Many are surprised to learn that when you file bankruptcy that no one will come to your house to take an inventory of what you own. The Court, and your attorney, rely on you to provide the information as to what you own. It is vital that you be completely honest with your bankruptcy attorney. Failure to do so could have devastating consequences and end up costing you the fresh start you are seeking.
An Arizona Bankruptcy attorney at JacksonWhite offers a free consultation in bankruptcy matters. If would you like to discuss your particular situation with an Arizona bankrupty attorney, feel free to call at 480-464-1111.