Bankruptcy is a vast area of law with many nuisances and interesting facts.
First, when you file a bankruptcy you need to list all of your assets. For example, even if you plan to keep your home and keep your vehicle, you still need to list it in the bankruptcy case. There is a common misconception that if you are keeping something you don’t include it. That is not the case, it still needs to be disclosed. As another example of listing all of your assets, even pets need to be listed. Now, don’t worry, generally pets are of no interest to the bankruptcy estate, but they need to be disclosed.
Second, a chapter 7 or chapter 13 bankruptcy will stay on your credit report for 10 years. That being said, you can start working on rebuilding your credit after you receive your bankruptcy discharge.
Third, the personal liability you have on your secured debts (think vehicle or real estate) will be discharged in your bankruptcy case. You have to keep paying on the loans to keep the collateral, but your liability on the debt personally will be discharged. What this means is if down the road, after discharge, you decide to surrender the asset, you will not be on the hook for the debt. A caveat is if you sign a reaffirmation agreement in your case or not.
Fourth, you need to list all of your creditors when you file a bankruptcy case. This means family, friends, medical, credit cards, loans and any other debt you may have. You will testify to listing all of your creditors, so you definitely want to disclose everyone. Generally speaking, if you forget to add someone you can still add creditors after filing (if the debt was incurred prior to filing) for a certain length of time.
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No matter where you are in Minnesota, if you have any questions about bankruptcy, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!
