Can only Florida creditors be Included in a Florida Bankruptcy?
The answer is absolutely no. Bankruptcy is designed for the debtor to include all creditors from all United States territories.That is why bankruptcy is governed by federal laws and jurisdictions. Although an American bankruptcy will not discharge an out of country debt, the debtor does not have to be a US citizen in order to file for bankruptcy protection in the US. In fact, debtors are required to list ALL assets and ALL liabilities on their petition and schedules. Failure to do so could result in a denial of discharge and having your case dismissed.
What happens if the bankruptcy Trustee discovers an asset that I have not listed. Again, the Trustee may revoke or deny a discharge. Usually, the Trustee will setup a 2004 Examination which is the equivalent of a deposition and ask several questions to determine whether or not the omission was intentional or by accident. If the Trustee determines that the omission was accidental, he or she should not revoke or deny your discharge because it was not properly disclosed. When the debtor(s) are examined at their initial 341 meeting of creditors, the trustee makes them swear to the answers they provide the Trustee under oath. Lying under oath is a crime known as perjury. Perjury is very serious and could cost a violator fines and jail time.
What happens if a debtor fails to list a creditor but wants to include the creditor after the filing date? That is not a problem as long as the discharge has not gone through. The debtor or the debtor's attorney may amend the schedules to reflect a new creditor. However, there is usually a court filing fee and most attorneys will charge additional fees to amend schedules unless it was the attorney's mistake to list the creditor to begin with.
If the discharge has gone through, then the case may not be reopened to add a creditor. Judges and the court system like the finality of judgments and do not like overturning or setting final judgments. Furthermore, the attorney could be sanctioned for even trying to reopen the bankruptcy estate and setting aside a discharge, even if it is temporary.
If you have questions about Florida Divorces or Bankruptcy Law contact a Florida Attorney
Greg Gilbert
Keith Maynard
