Transcript:
Hi. Matt McArthur, bankruptcy attorney at Clear Counsel Law Group. Today, we're going to be talking about creditors, and the need to disclose, or list, or inform, or give notice to creditors in the bankruptcy context. First, I want to start today's discussion by discussing a little bit about attorney-client confidentiality.
As Your Lawyer, Your Communications With Me Regarding Creditors is Confidential
There's been some issues with clients not being entirely comfortable telling their attorney all of the facts, or giving your attorney all of the information. Please, be rest assured, that I am on your side as your attorney, and in order to be able to help you to the fullest extent of the law, I need all the information.
If I don't have all the information, it limits my ability to help you, and move forward, and improve your financial situation.
Aside from the fact that I'm on your team, and you want your attorney to have all the information to be able to best help you, there's a couple of practical reasons why you want to disclose all of your creditors to your attorney, and to the bankruptcy court.
You Are Legally Required to Disclose All of Your Creditors
First and foremost, the law requires it. When you file your bankruptcy case, you will compile a list of all of your creditors, with all of their addresses, the amounts owed, account information, other identifying features of the loan, or the debt, that will give the court notice of who you owe the money to. The court will also send out a notice to all of your creditors, informing them of the bankruptcy.
When we submit these documents, with this list of creditors, we're submitting it under the penalty of perjury.
That's the same type of penalty that would apply when you are testifying under oath in court. If you don't tell the truth, and you're intentionally misleading the court, that can result in subjecting you to potential federal criminal liability that carry criminal penalties, and that is the last thing that we want.
It's very important to make sure that if you know about a creditor, that you're including them in your bankruptcy documents, and including them in the process.
A Practical Reason to Disclose All of Your Creditors
Aside from that, there's an additional reason that you would want to include all your creditors, and it's to make sure that they get off your case. We don't want them bugging you, and harassing you, and sending out the notice of bankruptcy will put them on notice that hey, this person is filing for bankruptcy.
They're untouchable right now. Once you receive that discharge, you'll remain untouchable, assuming that that debt has been discharged my something called the discharge injunction, which prevents them from contacting you or trying to collect on this debt after the successful completion of your bankruptcy case.
Leaving creditors out is not a good idea, because one, it's against the law, and it can subject you to criminal penalties, and two, from a practical standpoint, it's not going to help you fully improve your financial situation, so please, when you're consulting with me as your attorney, please tell me about all of your debts.
We'll discuss the ramifications of each of those debts as it applies to your situation moving forward, and how this whole bankruptcy process will play out for you.
I'll give you this information free of charge, in a free consultation. It doesn't hurt to come in and ask the questions, so that you know exactly how to move forward.
I'm Matt McArthur at Clear Counsel Law Group, head of the bankruptcy department here.
Please come in and visit me, and we'll get you started.
