Debt Lawyer | Debt Checklist

Debt Lawyer | Debt Checklist

Debt Lawyer | When someone is getting ready to file for bankruptcy, it may be a good idea to create a debt checklist. This checklist should include a complete list of a person’s debts, the entities those debts are owed to and a list of assets and income.

Complete Debt List

It’s essential that a person filing for bankruptcy compile a complete list of their debts. If a creditor is not named on a bankruptcy filing, obligations to this creditor may not be discharged. Many people assume that they only need to obtain a credit report to get a comprehensive breakdown of what they owe. However, credit reports are not always 100 percent accurate or current. While it’s a good idea to run a credit report, individuals should also go through their financial records and ensure that they know exactly what they owe.

Debt Owners

It is increasingly common for debt collection companies to buy someone’s debt. Many individuals start out owing money to a credit card company but end up with obligations to a different organization. It is a good idea to determine exactly which entity owns a person’s debt, if for no other reason than to notify the debt collector about a person’s bankruptcy. This can prevent future contact or threats from a debt collector after a debt has been discharged.

Assets and Income

It may seem counter intuitive to create a list of assets and income for a debt checklist, but if someone is filing for bankruptcy, assets and income are an important part of the process. How a person’s bankruptcy filing goes often depends on how much money they make and if they have assets that can be liquidated to pay off debts. With a completed debt checklist, a debt lawyer can help someone determine what type of bankruptcy filing will best fit their circumstances. A debt lawyer could also assist someone in determining if their debts are able to be discharged and explain what types of property are and are not exempt from the liquidation process.