1. All debts must be listed. It is illegal to "play favorites" in listing your creditors. All creditors must be listed, even the ones you intend to pay after the case is filed.

2. All property and assets must be listed. Many assets are protected from being seized by the bankruptcy court. They are not protected if they are not listed. It is a crime not to list all property.
   

3. You may have to turn over any uncollected tax refunds to the bankruptcy trustee. Part, or all, of any tax refund due for the tax year a bankruptcy case is filed may be required to be turned over to a bankruptcy trustee. Also, any refunds that are due for previous years may be required to be turned over.
   

4. You must list all business information if you are self employed. If you are in business you must list all personal and business debts, assets, and income.
   

5. All income must be reported. This includes things many of us don’t normally consider income such as social security, family support, alimony, unemployment, and pensions.
   

6. You should refrain from incurring new debts before filing bankruptcy. Intentionally incurring debts with the intent not to pay may be a crime.
   

7. You should keep making your house and car payments if you intend to keep the property. You should maintain payments on all secured property a client wishes to keep that could be repossessed before the case is filed. This includes house payments, car payments, furniture payments, equipment and other items used as collateral.
   

8. Lying can get your case thrown out of court. The Court may disallow a bankruptcy if a client misrepresents any facts or otherwise lies on the papers filed in court for the bankruptcy.
   

9. Bankruptcy stops all bill collectors. The creditors, including tax collectors, are barred from attempting to collect any debt from you the instant the petition is filed. This protection is permanent for all discharged debts. Bankruptcy does not stop any criminal proceeding or government regulatory proceeding.
   

10. Bankruptcy does not clear up a credit report. It may be reported on credit reports for 10 years.
    

11. You cannot always change your mind. You cannot dismiss a Chapter 7 case without court approval. You can voluntarily dismiss a Chapter 13 case anytime.
    

12. Your mortgage company and bank can add "hidden" fees to the property you want to keep paying for. A secured creditor may add the attorney fees they incurred to the balance owned on the property. This may happen even if you are not behind on payments at the time the bankruptcy is filed. Most mortgages and other loan documents provide that reasonable attorney fees are allowed and will be added to the balance due on a loan.
    

13. Bankruptcy crimes are serious. Bankruptcy crimes carry a punishment by, among other things, imprisonment for up to five years. It is a bankruptcy crime to conceal property from the court or bankruptcy trustee; knowingly and fraudulently make a false oath or account; knowingly transfer or conceal property to defraud creditors; conceal, destroy, mutilate or falsify records or documents; file a bankruptcy petition to deceive or defraud.

John Joseph Volin, P.C.
 Arizona Bankruptcy Attorneys
Telephone: 480-820-0800 or 1-800-750-0200
Email Address:mailto:joe@volinlaw.com

2033 East Warner Road, Suite 106  Tempe, Arizona 85284