Do I Need Exact Amounts I Owe to Each Creditor When I File for Bankruptcy?
Have you considered filing for bankruptcy but held off because the process of obtaining all the specific information about your debts seemed too stressful? When you are already under stress as a result of financial struggles, it can feel almost impossible to sit down and determine, down to the very cent, the amount that you owe to every creditor on a specific day so that you can complete a bankruptcy petition and all required schedules. However, this is a common misunderstanding about the bankruptcy process. To be clear, you do not need to be able to provide the court with this level of specificity about your debts.
Our West Palm Beach bankruptcy lawyers can explain in more detail below, and we can speak with you today about getting started on your bankruptcy filing with our assistance.
You Do Not Need Exact Debt Balances to File for Bankruptcy
When a debtor files for personal bankruptcy, there are often a dozen or more forms, including forms named as schedules, that must be filled out accurately and in great detail. This process can seem extremely daunting for many debtors who are already dealing with the anxiety of delinquent debt or default. It is also common to hear that making any errors in these required documents can result in problems for your bankruptcy case, or even worse, fraud allegations.
Generally speaking, you must disclose all assets and debts in your bankruptcy filing. Failure to disclose information, or providing false information, is where you can cause significant problems with your bankruptcy. As for the detailed information in your schedules, you will also want to be sure that everything is correct. Although, when it comes to specific debt balances, you can essentially estimate.
Providing Debt Amounts as Close as Possible
As the American Bankruptcy Institute (ABI) explains, you can estimate balances you owe as closely as possible when you file for bankruptcy.
Since your documentation will provide key details about all of your creditors, your creditors (or debt collectors) will receive notice about your bankruptcy filing and will then provide detailed information themselves to the court about what you owe. The only potential issue that could arise in estimating your debt balances is if you are filing for Chapter 13 bankruptcy and your debt ultimately totals more than the threshold amount permitted. This is something that your lawyer can discuss in detail with you, however, and is not something to be concerned about before you have talked through the details of your case with a bankruptcy attorney.
Contact Our West Palm Beach Bankruptcy Attorneys Today for Help Completing Your Bankruptcy Petition and Required Schedules
Completing all of the required schedules for a bankruptcy case can be daunting, but your attorney can help you through every step of the process. As we discussed above, you will need to provide detailed information about your creditors and the types of debts you owe, but the bankruptcy court recognizes that debt amounts can vary after even a day or two, and the court is going to assume that the creditors will be able to provide the exact amounts that are due. You will not have to undergo additional stress trying to determine the precise amount — down to the penny — that you owe each individual creditor. While your schedules must be accurate and complete, the bankruptcy process is not as stressful as you might expect, especially when you have an experienced West Palm Beach bankruptcy lawyer at Kelley Kaplan Delaney & Eller, PLLC on your side. Contact our firm today to learn more about how we can assist you.
