Do I have to include all of My Debt in Bankruptcy
When you file bankruptcy you are listing under penalty of perjury you have included all of your creditors in the case. Unfortunately, this means you cannot pick and choose who you file on.
What this may mean for you:
First, even if you are keeping your secured assets (like home or vehicles) and will keep paying on the debt, they will need to be listed in your case. In a chapter 7 there is a statement of intentions where you list if you are keeping your property or surrendering it. In a chapter 13 you list in your bankruptcy plan what the intentions are with the asset and debt. Therefore, even if you are listing the creditor, the creditor should receive notice of your intentions.
Second, technically, even if it is not a formal unsecured creditor (for example, you owe your parents on money they loaned you), you should still list the debt in your bankruptcy schedules. Your liability on this debt would be discharged in the case.
The reason behind listing all of your creditors is two part. First, your bankruptcy discharge can only include the debts listed in your schedules. Secondly, you cannot choose who stays out of your schedules because that would create an unfair advantage to some creditors over others.
Creditors in your case will receive notice of the bankruptcy being filed and various other notices throughout your case. You may have up to a certain amount of time after filing to list creditors mistakenly not included, speak with your attorney regarding the timeframe, as it varies case to case.
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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!
