FILING BANKRUPTCY | DO I HAVE TO INCLUDE ALL DEBTS IN MY BANKRUPTCY?

TL;DR

You must include all your debts when filing for bankruptcy, regardless of who they're owed to or their nature.

Transcript

hey everybody john skiba here from the consumer warrior youtube channel uh in this video today we're going to talk about a question i get a lot from clients who are looking to file for bankruptcy and that is do i have to include all of my debts in this bankruptcy i'm going to answer that question but first if this is your first time here to my yout... Read More

Key Insights

• 📁 All debts, regardless of the creditor or nature, must be included and disclosed when filing for bankruptcy.
• 😨 Secured debts, like car loans and home loans, require continued payments to keep the collateral.
• 👶 Priority debts, such as taxes, alimony, and child support, also need to be disclosed and may require ongoing payments.
• 💳 General unsecured debts, like credit cards and medical bills, typically get discharged in bankruptcy.
• 💳 Filing for bankruptcy will likely result in credit card accounts being closed and discharged, even for current accounts.
• 😑 Divorced individuals cannot hide the bankruptcy filing from their ex-spouse if child support or alimony is involved.
• ❓ Bankruptcy is a complex process that requires understanding the different treatment of debts and the importance of disclosure.

Questions & Answers

Q: Can I exclude specific debts, like my mortgage or credit cards, when filing for bankruptcy?

No, all debts must be included and disclosed in the bankruptcy process, regardless of how they will be treated.

Q: How are secured debts, like car loans and home loans, treated in bankruptcy?

Secured debts require continued payments to keep the collateral (house or car), and you may need to sign a reaffirmation agreement to maintain the original terms of the loan.

Q: Can I keep certain debts confidential, such as child support or alimony payments?

No, all debts must be disclosed, and in cases of divorce or child support, the ex-spouse will be notified about the bankruptcy filing.

Q: Can I keep my current credit cards and continue making payments on them during bankruptcy?

Generally, all credit cards will be discharged in bankruptcy, even if they are current. It is not advisable to expect to keep any cards through the bankruptcy process.

Summary & Key Takeaways

• Clients often ask if they can exclude specific debts, like mortgages or credit cards, when filing for bankruptcy.

• The rule of bankruptcy is that all debts must be disclosed, regardless of how they will be treated in the process.

• Certain debts, such as secured debts and priority debts, have different treatment and may require continued payments.