What are the ramifications of filing bankruptcy?
Quite frankly (in our personal opinion), aside from one’s ability to get future credit, the primary negative aspect of filing bankruptcy is the personal and emotional feelings a person may have about bankruptcy.
Can I leave some creditors off of my bankruptcy petition? Do I have to list all of my debts?
All debts owing as of the time of a filing of a bankruptcy petition must be listed on the schedules; no creditor can be left off. This applies even to debts owed to friends or relatives. When a person signs a bankruptcy petition, he or she is certifying under penalty of perjury that all assets and all liabilities (debts) are listed on the petition. Additionally, at the time of the meeting of creditors, a debtor will be asked under oath if all assets and liabilties have been listed. This does not mean, however, that certain debts cannot be reaffirmed. Even if a debt has been discharged, the bankruptcy code is very specific that nothing prohibits the voluntary repayment of a discharged debt. On secured debts such as car loans and home loans, the debtor still lists that debt on the petition, but can reaffirm the debt in order to keep the property.
Do many people file for bankruptcy protection?
Absolutely. According to the American Bankruptcy Institute in a recent press release, bankruptcy filings nationwide for the 1997 calendar year were at an all time high–over 1.4 million petitions. In the Eastern District of Tennessee, over 10,000 petitions were filed in 1997.