Occasionally clients will tell me that they would only like to file bankruptcy on one or just a few of their creditors. While this is not entirely possible, there are some similar options.
How Bankruptcy Works
Clients inform me that they would like to keep their car lenders and home lenders out of the bankruptcy. This would be an ideal situation. We get to keep the loans we want and ditch the high interest creditors with the bad terms. Unfortunately, that is not how bankruptcy works. But to some extent we do get to pick and choose, not about which creditors get listed in the bankruptcy-they are all listed. But we get to pick and choose who keeps receiving payments.
Choosing Whom to Pay
Ultimately, all creditors will be listed in your bankruptcy, but you can choose to keep paying some creditors. If you choose, you can continue to make payments on your mortgage, on your vehicle and on your unsecured debt (not recommended). But all the creditors will be listed on your petition, and all of the creditors will get notice and your personal liability on those debts will be discharged.
It's Up to the Creditors as Well
A debtor does have to prepare themselves for how creditors will react to the bankruptcy filing. Some car lenders require that debtors sign another agreement with them to retain the property (most lenders do not require these agreements).
Commonly, online access to accounts (vehicle payments, mortgage payments, online banking resources) will be suspended if not revoked indefinitely. So even the creditor accounts you wish to continue to pay, those creditors may respond to the filing by suspending online access. Frequently, a request or letter to the creditor requesting to restore your online access will work to restore access, but this is not always the case.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LifeBack Law Firm
It is important to remember what you are gaining or rather what you are losing when you file bankruptcy. You are losing the debt, while you may experience some inconveniences the benefits will far outweigh the hassle. Contact the attorneys at LifeBack Law Firm and see us at LifeBackLaw.com. You will be glad you did!
