Palos Heights Bankruptcy Lawyer Says Notice All Creditors

The unsecured creditors, which in most cases include credit card bills, medical bills, and things of that nature, need to be fully listed on the bankruptcy petition.  We always give the client the opportunity to review the entire petition.  We ask them to review the list of creditors in particular detail. One issue that crops up is that the claim amount listed is different than the actual amount the client owes the creditor. However, for a Chapter 7 case, the amount owed really does not matter. As long as the debt is listed, the full amount incurred before the case is filed will be discharged.  It is only creditors who the debtor fails to properly list that can lead to an issue.  Under the current bankruptcy code, all creditors must receive notice and there are certain general rules with regard to such notice.  We also list creditors such as child support recipients, back taxes as well as secured creditors, mortgage and car payments.  To be clear, it is better to over-list than to not list at all.  In the spirit of full disclosure, a debtor should show his hand so to speak and let the process proceed without incident.