The bankruptcy code requires that a petition disclose all of the debtors assets and liabilities. But, the petition allows the consumer to designate those debts he or she wishes to continue paying on. It is not uncommon for people to continue on with certain kinds of debt. Generally, these are the most common debts we see remain even after discharge:
Credit Cards
You may be able to keep your credit card if you decide to reaffirm the debt. When we counsel clients, we normally tell them to go ahead and list their credit card debt and have it discharged. Now, if you have a zero balance on one of those cards, you do not have to list it in the bankruptcy petition. But, our experience tells us that the credit card company will eventually find out about the bankruptcy filing and either cancel your account or change the terms of your agreement.
Home Loans
The most common debt that is continued is the home loan and one of the main reasons why people file for bankruptcy protection. The mortgage company will generally want the consumer to reaffirm the debt through a new agreement albeit with the same terms. Now, there are certain scenarios in which you should have your home loan discharged in bankruptcy. Contact an experienced bankruptcy attorney in your area for a consultation to determine whether or not it is a wise financial decision to keep your home.
Car Loans
Car loans can be a little tricky depending on how much you owe on the car and how much it is worth. In our experience, the decision to keep a car loan is not clear cut. You certainly can reaffirm yourself to the original agreement by filing with the bankruptcy court. Certain states have specific rules on the issue. Again, you should contact an experienced bankruptcy attorney.
We at the Law Office of Harold D. Thompson are El Cajon Bankruptcy Lawyers dedicated to helping you get out of financial distress. If your debts are piling up and you are looking for a “fresh start” call a East County Bankruptcy Lawyer that will fight for your rights. Call us TODAY at 619.615.0767 or visit one of our two websites at www.ThompsonLawSD.com or www.MySanDiegoBankruptcy.com
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