Can I Pick and Choose Which Debts to List in bankruptcy?

One common myth about bankruptcy is that you can pick and choose which debts to list. People often have a credit card or particular debt that they want to keep. People often ask, do I really have to list every debt? The answer is yes. In a Chapter 7 or Chapter 13 bankruptcy you are required to list all of your debts. The bankruptcy code says that all creditors must be treated equally. 

When you file bankruptcy you are required to provide a complete and accurate picture of your financial affairs. This can include:

• All creditors, secured or unsecured
• Personal loans. Even loans from friends or family.
• Collections and judgments
• Back rent and old utilities
• Medical bills
• Co-signed debts 

Even if a debt doesn’t show on a credit report, it still must be listed in your bankruptcy case. If a debt isn’t listed it may not be discharged. Some people are hesitant to list certain debts. Especially home loans, vehicle loans, or a credit card they are hoping to keep.

Even though all debts get listed, listing a debt doesn’t mean you cannot pay it later. You can still voluntarily make payments on a debt after filing a bankruptcy. There may be certain debts you need to keep paying such as a car loan or a mortgage. If you want to keep your car or your home you have to keep making the payments. The car loan or mortgage must be listed in the bankruptcy but that does not automatically mean you are going to lose them. A bankruptcy attorney can help advise you of your options. 

CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM

If you are dealing with an overwhelming debt problem, it is important to discuss your options with a bankruptcy attorney. If you have questions about bankruptcy and would like to do a free consultation to go over your options, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!