Simple Solutions To Financial Freedom

How Much Information Do You Provide When Filing for Bankruptcy?

On Behalf of | Dec 11, 2020 | Firm News |

Recently, a prospective client asked a question about their possible bankruptcy claim. Their car had been repossessed and they had a limited amount of time to respond. Their question:

If I file bankruptcy do I have to include the fact that I have a mortgage? Can I just file bankruptcy over the car repossession and no other debts?

Bankruptcy Advocate’s attorney, Marcus Herbert, responded to the question by saying:

“People often ask the question as you did which signals that you are worried if you mention your home loan it will cause you additional trouble. It is very important to know that giving or withholding information in a bankruptcy, in order to manage, control, or manipulate the outcome to be the way you want it, is both dangerous and illegal.

The most fundamental rule to remember in the field of bankruptcy is tell the complete truth. Get an experienced, very good attorney and do not hide any facts. If you want to protect the home, your lawyer needs to know you have a home, what is owed on it, how much it would bring in the current market if you tried to sell it as it is, without investing any more time or money into making it better or prettier.

With these facts your lawyer can come up with the best option that does not put the home at risk. Most often the solution is as simple as signing an agreement called a Reaffirmation Agreement that makes it official you are choosing to keep the home and agree to pay the debt on it as you contracted to pay, and you will honor your original loan terms as they always were.

If your situation is any more complicated than that, I recommend you seek advice of an experienced bankruptcy lawyer to get you out of trouble before it even starts. At Bankruptcy Advocates all prospective clients receive an initial consultation at no charge.”

Southern Illinois Bankruptcy Attorney law firm Bankruptcy Advocates is located in Carbondale and serves a wide geographic community including Carbondale, Murphysboro, Marion, West Frankfort, Johnston City, Benton, Herrin, DuQuoin, and Pickneyville. We are a debt relief agency. Our southern Illinois bankruptcy attorneys help people file for relief under the Bankruptcy Code. Give us a call at 618-549-9800 or email us at [email protected]  to speak about your case or legal matter. Convenient appointment times are available.