Do I Need to Include All my Creditors and Debts in A Bankruptcy?

Are you thinking about filing for bankruptcy as a way to escape your debt?

You’re not alone, many people who are struggling with heavy bills will eventually turn their attention to this possibility.

Indeed, for some with insurmountable levels of debt, it can be the only option.

But it’s important to approach this the right way.

You need to know what requirements are set in stone here and what information you must disclose.

For instance, you might be curious whether you must include all your debts and creditors in bankruptcy.

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Do you need to list everyone that you owe money to?

The answer is simple.

You do need to make sure that you include all your debts in a list when you are filing for bankruptcy.

It’s important that you don’t leave any out because if you do this then you can end up in a situation where your bankruptcy isn’t approved and you are not discharged.

Why Is It Important To Include All Your Creditors?

Getting your debts discharged through bankruptcy or even a consumer proposal should be considered a completely fresh start.

It ensures that you have a blank slate and this does include any unsecured debts that you may have.

That’s true regardless of whether you have bank loans, credit cards or outstanding utility bills.

It’s all in the same package.

However, this will only occur if your creditors are informed.

This won’t happen if they aren’t included in your list of debts.

Even secured debts must be noted because they will not be included in the bankruptcy.

So, it’s important for your trustee to know exactly how much debt you are going to be left with once you are discharged.

The Best Policy?

The best policy here is to make sure that you are completely honest about what you owe and how much you can afford to pay back.

Don’t forget, your trustee is always going to be here to help you.

But they can only do this if you provide them with all the right information.

If you leave anything out, then you’re going to find it difficult to get the answers that you need.

It could even delay your discharge which can leave you in debt for a lot longer than you would like.

Of course, honest mistakes do occur but they should be corrected as quickly as possible.

By doing this, you can make sure that you don’t end up with debt hanging over your head indefinitely.

Are you interested in learning more about the process of filing for bankruptcy?

We can help and will be happy to give you more information on this possibility.

Contact us today or fill out a free evaluation form and we can immediately support you on your path to recovery from your debt.

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

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