Do I Need to Include All of My Debts in My Bankruptcy Case?
Are you considering a personal bankruptcy filing in South Florida? If so, one of the early steps you will need to take is to identify all of your debts and all of your assets. In accounting for all of your debts, you may be thinking about specific debts you have that you may not want to be included in your bankruptcy case for one reason or another. For example, you may have a debt that a friend or family member co-signed, and you may not want to have that debt burden placed entirely on your co-signer. Or, for example, you may have a secured debt that you do not want to include in your bankruptcy case because you want to keep the collateral, such as an automobile for which you have an auto loan. Regardless of the specific reason, you may be wondering: do I need to include all of my debts in my bankruptcy case?
In short, the answer is yes. There is no such thing as a partial bankruptcy. If there are specific debts that you are hoping can be handled differently from other debts in your bankruptcy case, there may be options available to you. Our West Palm Beach bankruptcy lawyer can say more.
Consider the Type of Bankruptcy You Are Planning to File
Before you begin worrying about debts that you do not want to have discharged in your bankruptcy case, it is important to consider the type of bankruptcy you are filing. In general, if you are filing for Chapter 13 bankruptcy, all secured and non-priority debts will need to be paid in full — these types of debts will not be discharged, and no assets will be liquidated. Even when it comes to non-priority unsecured debts, no assets will be liquidated in a Chapter 13 bankruptcy case. And, to be clear, these debts may not be discharged — it will depend on the specific financial circumstances of the debtor.
If there are Chapter 13 debts that would be eligible for discharge that you do not want to be discharged (such as those with a co-signer), or debts in a Chapter 7 case that you do not want to have discharged, you may have another option.
Keeping Certain Debts in a Chapter 13 or Chapter 7 Bankruptcy Case
What if a debt is eligible for discharge, either in a Chapter 13 case as a non-priority unsecured debt, or as any type of debt in a Chapter 7 case, you may be able to enter into a “reaffirmation agreement.” The best way to determine your eligibility for a reaffirmation agreement — through which you would reaffirm the debt and your relationship to the creditor — is to speak with a bankruptcy lawyer.
Contact Our West Palm Beach Bankruptcy Lawyers Today
Whether you have questions about how specific debts will be treated in an individual reorganization bankruptcy, or you want to find out more about a reaffirmation agreement in your liquidation bankruptcy, one of the experienced West Palm Beach bankruptcy attorneys at Kelley, Fulton, Kaplan & Eller can help. We can speak with you today about the details of your bankruptcy case, can answer any questions you have, and can begin working with you on your bankruptcy filing. Contact our firm to get started on your personal bankruptcy case in South Florida.
Source:
law.cornell.edu/uscode/text/11
