Chapter 13 Bankruptcy Requires Listing All Lenders, Yes Even Mom

When people think about filing for Chapter 13 bankruptcy they often only think about their debts with companies such as credit cards and mortgage lenders. But filing for Chapter 13 bankruptcy requires that you list all debts including those personal loans you took out with friends and family. Failing to list all of your personal loans from friends and family in the Chapter 13 bankruptcy filing may cause your case to be dismissed.

Another thing you need to remember is that you cannot legally give any preference to particular creditors. For example, if you are considering filing for Chapter 13 bankruptcy you are not allowed to pay off debts owed to family and friends while allowing credit card bills and mortgage payments to go unpaid. When filing for Chapter 13 bankruptcy, giving preference to particular creditors while mostly likely cause your case to be dismissed. If you are considering filing for Chapter 13 bankruptcy keep meticulous records of debts owed to family and friends as well as payments made, your case may depend on it.

By | 2017-12-13T02:37:29+00:00 October 17th, 2008|Chapter 13 Bankruptcy|Comments Off on Chapter 13 Bankruptcy Requires Listing All Lenders, Yes Even Mom