Why Clients Need to Provide Full Disclosure to a Bankruptcy Attorney in Birmingham AL

by | Nov 6, 2014 | Lawyers and Law Firms

The decision to file for bankruptcy is not something to be taken lightly. During a consultation with a Bankruptcy Attorney in Birmingham AL, it is imperative to provide full disclosure about every aspect of the current financial situation. Failure to do so could lead to having the petition for bankruptcy protection dismissed, and leave the client to the tender mercies of his or her creditors.

Information About Income and Assets

When it comes to income sources, make sure to include details about every source that currently generates funds on an ongoing basis. This includes investments that pay dividends on any type of recurring schedule, spousal or child support, and even any interest paid on offshore accounts. While some sources of income and assets may be considered exempt, others may need to be accounted for when determining eligibility. The Bankruptcy Attorney in Birmingham AL will be able to determine which sources must be included and which ones are not necessary for consideration.

Debts and Creditors

When discussing the total debt load, it is important to provide information about every creditor. This includes unsecured accounts that currently do not have an open balance. Choosing to provide this level of information ensures that nothing is left out and that the attorney will not have to deal with any surprises later on when the court takes steps to verify the information provided. Keep in mind that part of the bankruptcy process for a Chapter 7 action requires the court to appoint a trustee to look over the information provide in the bankruptcy petition. If any data is found to be missing, that could be interpreted as being intentional on the part of the client. Rather than deal with this type of event, it makes sense to provide all details about assets, income, and debt up front.

For people who have tried other methods to bring their debts under control and found it impossible, bankruptcy may be the only practical solution. Visit Forstman & Cutchen LLP and learn more about how the process works under current laws. From there, schedule a consultation with an attorney and determine if this is a solution that is truly in the best interests of the client.

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