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What if I forget to list a liability in my bankruptcy in Chicago IL?

One of the most important steps in your Chicago bankruptcy filing is submitting a comprehensive list of your creditors. Known as a mailing list or mailing matrix, this document must include every one of your liabilities. Forgetting to list just one creditor can cause problems with your bankruptcy case, and even land you in legal hot water. But accidents happen, and fortunately it’s possible to correct honest mistakes and get your bankruptcy case back on track if you act quickly.

There’s a reason bankruptcy courts take the mailing list so seriously. Some people filing for bankruptcy in Chicago deliberately omit required information such as debts and creditors because they want to pick and choose whom to pay back. But bankruptcy works by distributing assets fairly among your creditors. Because of this, intentionally failing to disclose liabilities is considered bankruptcy fraud – a very serious crime.

Most people who leave a creditor out of their bankruptcy Chicago IL case do so unintentionally. If you find you have mistakenly omitted a creditor or any other information pertinent to your bankruptcy case, tell your bankruptcy attorney right away. If it was obviously a simple oversight, your bankruptcy attorney can amend your schedule to add the liability to your bankruptcy.

The worst thing you can do is to ignore the problem and hope no one will notice it. Remember, bankruptcy trustees are trained to look for red flags. If a bankruptcy court sees that you’ve left off a creditor, even if it was on accident, it can cause them to become suspicious of you and the rest of the information included in your bankruptcy petition. Your best bet is to notify your attorney the moment you notice missing information so they can quickly correct the problem.

If you’re in the process of filing for a Chicago Illinois bankruptcy, make sure to carefully review your mailing list and see that it matches up with the creditors listed on your bankruptcy schedule. You may want to consider comparing your mailing list to your most recent credit report. However, bear in mind that not all debts may be included on the report.

It’s normal to feel a little overwhelmed when preparing to file for bankruptcy. There are a lot of steps to remember! But you don’t have to go through the process alone. Enlisting the help of an expert Chicago Illinois bankruptcy attorney firm like Debt Stoppers Chicago IL is the best way to ensure a smooth bankruptcy case - and freedom from debt.

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