When you file for bankruptcy, you are required to state all your debts. Otherwise, it will negatively affect your bankruptcy petition and create problems. Only debts that are listed in the bankruptcy petition can be discharged by the court.
It is important to follow the bankruptcy guidelines and be honest in your filing. If you do not follow the rules your bankruptcy case could be dismissed or the court may deny the discharge. The consequences are the same if it would appear to the court that you tried to conceal or hide a debt. This can be considered as an act of fraud and may even subject you to criminal penalties. Although there are bankruptcy cases that proceed even if there were omissions, the debts that were not listed are not going to be wiped out in bankruptcy. This means that you would still have to pay them when you leave bankruptcy.
Regardless if you do not want to discharge a particular debt it should still be listed in your bankruptcy petition. You can reaffirm a debt to prevent a discharge. A reaffirmation agreement with a creditor will allow you to retain and pay off the full amount of a debt. You may want to reaffirm a loan in order to keep your house or car. Also, debts can be reaffirmed in order to protect a co-signer from a creditor. The bankruptcy protection given to the primary borrower does not extend to co-signers or guarantors. Hence, creditors can go after the co-signer to get payments if a primary borrower files for bankruptcy.
A bankruptcy filing that involves omissions or errors is likely to cause more complications than they try to fix. In case you involuntarily omitted a debt, the best thing to do is to inform your San Antonio Bankruptcy Lawyer right away and look into the options available. You can opt to continue and pay off the money owed. But this choice basically beats the purpose of declaring bankruptcy. Depending on the stage of the bankruptcy process, the attorney may be able to amend or reopen the bankruptcy case to add in a creditor. Through this, you will be able to avoid losing the opportunity to eliminate as much debt as possible.
Listing your debts when you file for bankruptcy gives the court the information necessary to notify your creditors of the bankruptcy. You should not confuse being listed with being included. The law says all debts are included even if they are not listed. Nevertheless, the law recognizes that it is possible for you to have a debt you forgot about or simply unaware of. If you find out a creditor after you have been given a discharge, send the creditor a copy of your debt discharge. If they want to argue they can ask the court to reopen your bankruptcy case. Otherwise, the creditor is considered 'on notice'.