Bankruptcy – Do I Have to Include All of My Debts?


– Hey everybody, John Skiba here from the Arizona Consumer Law Group. I’m also founder of the
Consumer Warrior Project, which is dedicated to
providing information to consumers who are dealing
with serious debt problems. In today’s video, I want to
talk about a common question I get with my bankruptcy clients. And that is, when someone files for bankruptcy, I provide them with documentation where they have to give me a whole list of all their debts that they owe. And often people will say, you know they’ll ask me the question, do I need to include all of my debts? Because there are certain debts that they don’t want to go bankrupt on, or they don’t want eliminated through the bankruptcy process. The answer to that question is yes, you are required to
disclose all of your debts in the bankruptcy process, but the fact that you’re disclosing that a certain debt exists, does not mean that all
debts are treated equally when you file for bankruptcy. So for instance, secure debts like mortgages or car loans, debts that have property or
collateral attached to them, those are treated differently
typically in a bankruptcy than an unsecure debt
like a credit card debt or a medical bill, or even things like
taxes or student loans. So, while you do have to
disclose the existence of all debts when you file for bankruptcy, things like your car
loan and your home loan typically aren’t really
impacted by the bankruptcy as long as you continue to make
the monthly payments on it, whereas unsecure debts
like the credit cards and medical bills, those are typically discharged. Now there are certain types of what are called
priority unsecure debts, things like taxes, child support, those typically do not go away through the bankruptcy process, and student loans also fall
into that category of debts that in most cases are going to survive the discharge of your bankruptcy, and you’re still going to have
to pay on even after the fact. So that’s the answer to the question, yes, you do have to disclose everything, but not everything will be eliminated through the bankruptcy process. It’s particularly important to list if you have debts that
you owe to family members. Family members or close friends, the bankruptcy court refers
to these as insiders. If you owe debts to them, or if you’ve been making
payments on a debt to a family member of friend, that can impact your bankruptcy case, and that’s something for
sure you want to disclose to your attorney before
you actually file the case, so that they can work
through some of the issues that may come up because
of those payments. If you have additional
questions on bankruptcy or need help with other
types of debt issues like debt collection
lawsuits, foreclosure, wage garnishment, repossession, head on over to ConsumerWarrior.com, we have 100 videos or more there, 500 articles that I wrote myself, as well as an audio podcast
that can help answer a lot of the questions that you may have. Thanks for watching today.

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