Who gets included when I file bankruptcy?
When filing for bankruptcy, it’s common to wonder who will be included as creditors. In a similar vein, it’s common to wonder about the treatment of various loans. In some cases, you may not want to discharge a particular debt. You may also not want to discharge a particular loan, like a mortgage, auto loan, or retirement account loan. This principle is one of the many benefits that the bankruptcy process offers.
First of all, bankruptcy includes all creditors. This does not mean, however, that all creditors will be treated the same, or that every debt owed by a particular creditor must be handled the same. This can allow someone going through bankruptcy to keep their vehicle and home, regardless of whether or not they are subject to an auto-loan or mortgage. In contrast, unsecured debts, such as credit cards, personal loan, lines of credits, and medical bills, will be subject to an automatic discharge at the end of bankruptcy, which will eliminate any personal liability you may have. These debts will still be listed as part of the bankruptcy, but not necessarily included in the discharge. These debts can still be resolved or mitigated in other ways depending on the chapter and route of the bankruptcy. For example, in a Chapter 13 filing, recent taxes could be paid over the course a Chapter 13 plan. Your attorney will be able to advise you about the different ways that specific loans can be addressed by the bankruptcy process.
Fundamentally, bankruptcy exists to offer you protection from creditors. Due to this, creditors who you may have at the time you file for bankruptcy must be included in the process. This will ensure that you remain protected throughout the bankruptcy. This does not mean, however, that all debts are treated the same. Call Now for a Free Strategy Session with a MN Bankruptcy Lawyer at LIFEBACK LAW FIRMS
There is a wide range of tools that can be used to tailor bankruptcy to meet your needs and priorities. We are experts in leveraging these tools to your advantage. When the time is right, or when you are ready, please don’t hesitate to reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to
www.lifebacklaw.com
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