QUESTION
Can I exclude an unsecured loan from my petition?
Asked on Sep 30th, 2014 on Bankruptcy - New Jersey
More details to this question:
I am up to my eyeballs in debt and I am only 24. I was laid off and cannot find a job. My husband's salary cannot pay for all of our bills. I am thinking about bankruptcy but I have one unsecured loan that I do not want to include. My dad co-signed for it and I do not want him to be burdened.
12 ANSWERS
Derek W. Freeman
You need to disclose all debts on your bankruptcy petition. If you fail to disclose a debt, the penalty can be severe. However, you can keep on making payments on this loan if you like. Nothing prevents you from doing so. Just understand that if you stop making payments, your dad will be on the hook.
Answered on Oct 08th, 2014 at 4:13 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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When you file bankruptcy, you're required to list all your assets and all your debts. You'll swear (or affirm) to this on penalty of perjury. So, you have to list all your debts, even cosigned debts. And you're obligation on the debt will be discharged while your father will remain liable. You can ask the court to reinstate your liability, this is called "reaffirmation". However, even if you're not liable, you can still make the payments.
Answered on Oct 02nd, 2014 at 3:34 AM
You must include all debts. Just continue paying the debt after the BK. The creditor does not care who makes the payments. You will not have a legal obligation to repay this debt, but if you feel morally bound continue to pay the debt.
Answered on Oct 01st, 2014 at 3:21 PM
Excluding a debt from a bankruptcy is a criminal offense and most of the time, doesn't work because the creditor finds out about your bankruptcy anyway. You have the right to repay any debt even if you have discharged it through bankruptcy. And you are NOT a criminal.
Answered on Oct 01st, 2014 at 2:09 PM
You must list all your debt regardless of your intentions regarding repayment of that debt. You may inform the unsecured lender that you intend to honor the debt and ask them not to bother the co-signer, but the lender will follow their own policies on that and you cannot stop them from trying to collect from your father. You must also list your father as a co-debtor on Schedule H. You should be honest with your father and give him advance notice so that he can be prepared if he is contacted, and he might even suggest alternatives to bankruptcy that you had not considered.
Answered on Oct 01st, 2014 at 12:43 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes. You can reaffirm it.
Answered on Oct 01st, 2014 at 10:55 AM
No you cannot the law requires you to mention all you debt.
Answered on Oct 01st, 2014 at 10:55 AM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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You MUST include all liabilities and assets in your bankruptcy petition. If you leave out a debt, you will have committed a bankruptcy crime and you could have your discharge denied (in addition to other penalties). You should see a competent lawyer before you do anything.
Answered on Oct 01st, 2014 at 10:54 AM
You must include that debt. Your responsibility for the debt ends and it will be his. You could voluntarily pay your debt back to your father after the BK.
Answered on Oct 01st, 2014 at 9:39 AM
Complex Litigation Attorney serving Costa Mesa, CA
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Thomas Vogele & Associates, APC
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You should include it in your bankruptcy but agree to a reaffirmation agreement with the lender. Keep in mind that the lender may decide to pursue your father, nonetheless, but when you sign your petition, you do so under penalty of perjury and one of the questions you will be asked at a Rule 341a Meeting of Creditors is whether you have included all your liabilities on your petition. If you don't include the debt and then falsely state that you have listed all your debts, you could be charged with bankruptcy fraud. Meet with a good bankruptcy specialist to get more information before deciding what to do. Good luck!
Answered on Oct 01st, 2014 at 9:39 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
2 Awards
All Debt is included in the Petition. The Master Computer that handles the bankruptcy sends out notices via SS# and other means to almost all creditors in the nation. Chances are if you leave it off, it will still be found out. You could reaffirm the debt, but that is not wise. If the debt is unsecured and not a student loan, why not include it and just assist your father in making the payments.
Answered on Oct 01st, 2014 at 8:54 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Under your circumstances you really need to confer with a bankruptcy attorney. Generally the answer is yes, you could reaffirm that debt. Seek counsel BEFORE you commit.
Answered on Oct 01st, 2014 at 8:54 AM