Can I Exclude Any of My Debt in a Chapter 13 Case?
If you are filing for Chapter 13 bankruptcy and planning to repay all of certain debts as part of your repayment plan, do those debts need to be included in your bankruptcy filing? Or, if you have concerns about the Chapter 13 debt ceiling, is it possible to include the debt from a single credit card, for example, so that you can remain eligible for Chapter 13 bankruptcy and simply plan to repay that credit card debt on your own outside the bankruptcy filing?
In short, you cannot lawfully exclude any of your debt — no matter how minor or small — when you are filing for any type of personal bankruptcy, whether it is a Chapter 13 bankruptcy filing or another type of bankruptcy filing. You are required under the United States Bankruptcy Code to provide the bankruptcy court with complete and accurate information about all of your debts, regardless of your plans for those debts in your Chapter 13 case. Our South Florida bankruptcy lawyers can tell you more below, and we can speak with you today to answer any questions you have about the process of filing for Chapter 13 bankruptcy.
You Must Disclose All Debts, Even If You Plan to Repay Them in Full
When you create your Chapter 13 repayment plan, certain debts must be repaid in full and others may be repaid in full (based on your resources and exemptions), while some nonpriority unsecured debts may be eligible for discharge.
To be clear, even if you know that certain debts will be repaid in full, they must be included in your bankruptcy filing. All debts must be identified completely.
You Cannot Exclude Any Debts to Become Eligible for Chapter 13 Bankruptcy
As we noted above, Chapter 13 eligibility is based on the total amount of debt you have. Through March 31, 2028, the debt ceiling for Chapter 13 bankruptcy is set at $526,700 in unsecured debt and $1,580,125 in secured debt. If you exceed either of those debt ceilings, you will need to consider a Chapter 11 filing (another type of reorganization bankruptcy) instead of a Chapter 13 filing.
You absolutely cannot decide to exclude a specific debt or two — even if you are planning to repay it in full during your bankruptcy case — in order to lower your amount of debt to become eligible. You must disclose all debts in full.
Contact Our West Palm Beach Bankruptcy Lawyers Today for Assistance with Your Chapter 13 Bankruptcy Filing in South Florida
When you are filing for Chapter 13 bankruptcy, it is crucial to be completely transparent about all of the debts you owe and to ensure that you provide accurate and complete information to the bankruptcy court. As we discussed above, even if you have certain debts that you plan to repay in full as part of your Chapter 13 filing, or if you have debts that you are concerned may impact your Chapter 13 eligibility due to the debt ceiling. Everything must be properly disclosed. If you have any questions, or if you are ready to begin working on your Chapter 13 bankruptcy case, you should reach out to one of the experienced West Palm Beach bankruptcy attorneys at Kelley Kaplan Delaney & Eller, PLLC. Contact our firm today to have your questions answered and to learn more about how we can assist with your personal bankruptcy filing.
Source:
law.cornell.edu/uscode/text/11
