If you are in over your head with debts and are having trouble keeping up with your payments, you may choose to file for bankruptcy. Bankruptcy can offer a chance for consumers to get a fresh start. A Chapter 7 bankruptcy erases most unsecured debts, such as credit card debt and medical debt. A Chapter 13 bankruptcy is a reorganization and allows the consumer to reorganize their debts into manageable payments.

Many consumers who file for bankruptcy want to get rid of all of as many of their debts as possible, but may also want to retain one credit card. You may have a credit card that you only owe a small amount of money on that you want to keep open because it provides you with a lot of perks, such as airline miles or cash back.

However, you do not get to pick and choose which creditors you report on your bankruptcy petition. The bankruptcy rules are clear – you must list all creditors to whom you owe money in your bankruptcy petition. You do not get to leave any creditors off the petition. If you fail to list a creditor and the bankruptcy court finds out, the court may not discharge your debts, in which case you will have spent money and time on a bankruptcy, only to emerge still owing your debts after the case is over.

Bankruptcy is not only about giving debtors a fresh start. It also helps ensure creditors are treated fairly. If the court decided to sell some of your property to give to creditors, those creditors must have been listed in the court’s documentation in order to ensure that they receive fair treatment under the law.

Debtors often forget to list individuals that they owe money. If you owe money to a person rather than a business, the debt to that individual must be listed on the petition as well. If you borrowed money from your mother, that loan must be listed on the petition, even if you do not want her to know about your bankruptcy. However, after your bankruptcy is final, you can choose to repay the old loan to your mom, although legally you will not be required to repay it.

Many individuals who need to file Bankruptcy are embarrassed and emotionally drained. However, Bankruptcy could be the right solution you. It can offer a fresh start and relieve the emotional burden of debt overload. If you have questions about bankruptcy in Atlanta, call the Atlanta bankruptcy attorneys at Holston & Huntley, LLC at 888-513-0004. We can help you evaluate your options. Call us today to schedule a free consultation on your case. We serve Metro Atlanta Georgia as well as Birmingham Alabama including surrounding areas.