Making the decision to file for Chapter 7 bankruptcy is a huge event in life, and you should find out as much as you can about it before filing your documents. One thing you may want to talk over with your bankruptcy lawyer involves the debts you must include on your bankruptcy. When filing for Chapter 7, you will be required to list every single debt you have. Here are a few things to understand about this issue of bankruptcy.
Non-dischargeable debts must be listed
While there are only certain debts that can be discharged through Chapter 7, you must legally list every single debt you owe. This includes non-dischargeable debts such as the following:
- Child support or alimony
- Court-ordered debts
- Tax debts
- Student loan payments
These four debts cannot typically be discharged; however, the bankruptcy court will want to know that you have them.
Debts you want to repay must be listed
There are also debts you may have that could technically be discharged, even if you do not want them to be. Debts like these must also be listed. An example of this is a loan you have with a relative. If you owe your relative $1,000, you could get this debt discharged through bankruptcy. In fact, the court will automatically discharge it during the bankruptcy proceedings.
You cannot lie about the debts you have, which means you must include every debt; however, this does not stop you from repaying the debts. If you decide that you want to repay a debt that was discharged, you have the right to do so. You should wait to do this until your bankruptcy is over, though, just so the court doesn't question the transaction.
You must list all credit cards
Another question many people have is whether they can skip listing a certain credit card on the documents so they can keep this card. This unfortunately is not an option. Again, you must list all your debts, and you will not be able to keep any of the credit cards you have. You will have the right to apply for new credit cards after your bankruptcy, but you may need to wait a while until your credit score improves enough to qualify for one.
Chapter 7 bankruptcy is a great tool to use if you have a lot of debt, but it is important to follow all the rules when using this. To learn more, contact a bankruptcy lawyer or law firm like Collins Toner & Rusen.