People who are mulling over filing bankruptcy often wonder if they will have to declare all their debts to a bankruptcy attorney. In a single word the answer to that question is a resounding "yes". Not only will you be handcuffing your bankruptcy lawyer at a creditor meeting by withholding information but also this can have serious ramifications on how the bankruptcy filing proceeds from that point onwards.
Why should you be forthcoming about all your debt information with your bankruptcy attorney?
When a bankruptcy attorney tells you to list all your debts, it would be prudent to do just that. After all, in this day and age of the internet, it is almost impossible to hide information about open credit lines from your creditors. Most lenders consistently search bankruptcy filings and cross reference the names with their database. If the name pops up, they investigate further and look for the SSN; in case of a match, the account is closed anyway.
So, there is no way that you can continue to charge on those one or two cards after filing for bankruptcy. However, you will put your attorney at a disadvantage by holding back information. Also, you may even end up convincing the judge that your intentions are less than honorable, which can put you in a considerable amount of trouble.
A Downward Spiral that a Bankruptcy Lawyer May Not be Able to Control
If you get caught failing to disclose all your debts, your bankruptcy lawyer will have to spend most of his resources being on the defensive and digging you out of the hole that you put yourself in. Everything will be meticulously scrutinized from thereon. The bankruptcy trustee will pay special attention to all the schedules including all your assets and the exemptions that apply to you.
A person filing for bankruptcy is expected to be totally honest with the court, once you break that trust, you can be absolutely sure that every word in the petition will be questioned. So, in your own interest, be completely open about all your debts. This will help a Chicago bankruptcy attorney to deal with your case more effectively.