The North Carolina Bankruptcy Information Blog

Before the deservedly unpopular 2005 reforms to the Bankruptcy Code, it was rare that an innocent mistake could cause your discharge to be denied or revoked. It used to be that trustees and the courts reserved this harsh measure for those situations where it was clear that a person filing for bankruptcy had engaged in serious, persistent and intentional misbehavior. Now, in the aftermath of the reforms, it is even more important than ever to hire a competent bankruptcy attorney to help you navigate a bankruptcy filing, not just because the reforms made declaring bankruptcy much more complicated, but also because a mistake could cause your discharge to be revoked or denied.…

We all make mistakes, but some are more costly than others. So how costly is it if you forget to list a debt in your bankruptcy paperwork? There’s no need to panic; forgetting to list a debt isn’t the end of the world. However, depending on what kind of bankruptcy you file, it can cause some problems in your bankruptcy. Here’s a quick rundown of the different scenarios in which you might forget to include a debt and what the consequences might be if you’re not able to fix the problem.

Let’s look at Chapter 7 first. If you’re like 96% of people who file for bankruptcy under Chapter 7, your case is a no-asset case.…

But you must resist!

You’ve caught on to the fact that certain kinds of debts are “better than others.” Knowledge is a good thing, but don’t get confident that you’ll be able to pull a fast one by trading off a non-dischargeable debt for a dischargeable one. The consequences simply aren’t worth it. Here again is another great reason to count on an experienced bankruptcy attorney when filing your case; he will help you act strategically to maximize the benefits of bankruptcy while helping you avoid the pitfalls and mistakes.

Most loans are unsecured and will thus be discharged altogether in most Chapter 7 cases, and discharged after successful completion of the payment plan in a Chapter 13 bankruptcy.…

There are at least three excellent reasons why should be very circumspect about reporting your assets accurately when you file for bankruptcy. The failure to list assets can have a serious impact on your case and your future ability to file. Be careful to advise your bankruptcy attorney of all assets, regardless of how insignificant the asset may seem. Consider these important reasons to accurately list your assets:

First, and perhaps most importantly, inaccurately reporting assets could land you in jail. Since almost everything you turn in in connection with your bankruptcy will bear your signature, fraudulent misrepresentation on these forms is perjury.…