Must you list every debt you owe in bankruptcy?

Recently, I received an email asking about filing a chapter 7 bankruptcy The writer asks:

"Do I choose which debts I want to include in my bankruptcy or does the trustee do this? I have a bank loan for my truck which I pay on time and I want to keep my truck and keep making payments. Do I have to include this loan in my paperwork for a bankruptcy? What happens if I don't include it?"

Answer: All debts must be listed in the bankruptcy petition. You can select to 'reaffirm' certain debts. Most chapter 7 consumers reaffirm financed items -cars, houses, jewelry, furniture and electronics. You can usually keep the asset by agreeing to keep paying for it. Now, your budget has to show that you can afford the payments, otherwise the judge could request that you prove how you can afford the payments if your budget shows you cannot.

Similarly, you must list all debts in a bankruptcy case, technically even small personal debts, such as the $10 you owe your Aunt Sue should be listed too! Otherwise, it would be bankruptcy fraud if you intentionally omit a creditor from a bankruptcy petition.

Amendments: if you find out that you inadvertently left a debt out of your bankruptcy filing, perhaps an old medical bill from 4 years ago, don't fret. You can always amend to include that bill in your case. If you do not, it will not be discharged under the bankruptcy code under BAPCPA. The court charges a nominal fee to amend to add another debt if you case is still open.

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Occupation: Bankruptcy Attorney

* Industry: Law * Occupation: Chicago Bankruptcy Attorney * Location: Chicago : Illinois : United States About Me Terry Leeders grew up just outside of Chicago, Illinois in Elmwood Park. He graduated from the University of Illinois, Urbana-Champaign and Thomas M. Cooley Law School. Terry started his legal career in 1998, where he focused his practice on Chapter 7 and Chapter 13 consumer bankruptcy cases. He has met with and counseled over four thousand clients about their financial needs. Terry realized that there was more he could offer each client in a small firm environment. Terry wanted to improve his client’s experience so he opened up the law firm of Leeders & Associates, Ltd. in which he can give his clients that one on one personal service they deserve. In addition to bankruptcy, Terry also focuses his practice on real estate, commercial leasing, landlord-tenant disputes, estate planning, wills and personal injury. * Education: Thomas M. Cooley Law School Lansing Michigan 1998 Juris Doctorate Degree University of Illinois Urbana-Champaign Illinois 1993 Bachelor's of Science Degree in Psychology Bar Admissions: U.S. District Court Southern District of Illinois 2000 U.S. District Court Central District of Illinois 2000 U.S. District Court Northern District of Indiana 1999 U.S. District Court Northern District of Illinois 1998 State of Illinois Supreme Court 1998 Organizations: Chicago Bar Association Illinois State Bar Association Tau Epsilon Phi Fraternity http://www.leederslaw.com http://www.chicagobankruptcynetwork.com http://www.luckyrealtygroup.com http://chicago-bankruptcy.blogspot.com http://bankruptcy-lawyer.blogspot.com http://filebankruptcy.blog.com http://chicago-sportschat.blogspot.com 312-427-7400 20 E Jackson Blvd. Suite 850 Chicago, IL 60604 We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

http://leederslaw.com