How to Amend a Bankruptcy

According to the federal bankruptcy law, the purpose of bankruptcy is to provide an opportunity to offer honest debtors with a chance to have a fresh start. Bankruptcy involves preparing and filing a legal document petition with the court that explains the bankruptcy terms. An actual bankruptcy case commences after the filing of a petition. It is also required that applicants file a statement of assets and liabilities, along with schedules listing all of their creditors. As the petition is a legal document that affects many creditors, it is important that the document is always accurate. Sometimes, due to error, omissions or other factors, it is necessary to amend the bankruptcy petition.

Instructions

1. Arrange for a meeting with the attorney or for a phone call with the document preparation service that is familiar with or helped handle the bankruptcy case. Provide the information to be amended to the attorney or case preparer, who can then have the revisions incorporated into the appropriate document and paperwork for filing with the court.

2. Clearly explain all modifications so that the trustee understands them fully and adequately. This will make it easier for him to approve the amendments. Unexplained or confusing information can cause delays and other inconvenient situations in a bankruptcy case.

3. Be certain that all secured creditors are included in the document, accounted for and scheduled to be paid. Items to be included are often car notes, taxes and houses, as well as other secured possessions and debts. It is necessary to have enough of an income to pay all of the bills for everything that is listed. Otherwise, the trustee will not be in a position to approve any of the amendments. There could also be a chance of the case being dismissed.

4. 
Have a meeting scheduled with the trustee so it is set and ready for after the court date, once the attorney files the motion to amend the bankruptcy petition.

5. Ensure that regular payments are consistently made to the creditors, which are still mandatory, unless the trustee directs otherwise.

Tips & Warnings

• Bankruptcy can be a complicated matter, so it is advisable to have an attorney representing your best interests.

• Depending upon the laws of the jurisdiction where the case was filed, there will be different requirements.

• If it is a no-asset case, it may not be necessary to amend the paperwork.

• It may be necessary to first file a motion to re-open the case to file amendments.

References

• Legal Information Institute
• U.S. Courts

Resources

• Total Bankruptcy