No you can't/Yes you can???

[Genenco]

OK, so I have heard from many here, you CANNOT "Pick and choose" the debts you want to keep, excepting in case of house and or car. But many BK websites say you can keep debts (But it's not a wise thing, unless you can get different terms) and so, while I hear you can't do this, I'm hearing "but yes you can"

Anyone good at explaining this?

[StaciMM]

This is my understanding...


You cannot pick & choose, but you can try...

OK, so I have heard from many here, you CANNOT "Pick and choose" the debts you want to keep, excepting in case of house and or car. But many BK websites say you can keep debts (But it's not a wise thing, unless you can get different terms) and so, while I hear you can't do this, I'm hearing "but yes you can"

Anyone good at explaining this?

[suprdav2]

Basically, you HAVE to list ALL debts on your bankruptcy, but you can choose to reaffirm debts (keep paying on the debt). By reaffirming debts, they will not be discharged in the bankruptcy. I don't see a point in reaffirming credit cards, because more than likely, they will close your account out anyways and you won't be able to use their card anymore.

[HHM]

Geneco: the answer depends on the context.

Your duty under the Bankruptcy code is to "list" all your creditors (i.e all debts you owe) in your bankruptcy petition (by the way, this includes secured debt like houses and cars).

However, after you file for bankruptcy, you have the option to reaffirm certain debts so they are not discharged in the bankruptcy. Also, you do not need to list creditors to whom you owe no money (i.e. credit cards with zero balance).
It's rarely a good idea to reaffirm a debt.

[BrokeCh7]

I can only speak from what my lawyer told me on this. I thought that a debt was money owed and when it came to my list of debts i only gave him the names of money owed.

The quick is I left a few out Sprint, Gas card and my merchent account. He was shocked and said no the BK laws are that you list all crediters in the bk and this is including the ones you don't owe too.

It was too late and it did not matter in the end nobody cared. I was very please because i did get to keep my merchent account and a gas card that still works today. Gas card was under an old business that i did not have any more but enjoy the card still.

[hhou812hh]

I can only speak from what my lawyer told me on this. I thought that a debt was money owed and when it came to my list of debts i only gave him the names of money owed.

The quick is I left a few out Sprint, Gas card and my merchent account. He was shocked and said no the BK laws are that you list all crediters in the bk and this is including the ones you don't owe too.

It was too late and it did not matter in the end nobody cared. I was very please because i did get to keep my merchent account and a gas card that still works today. Gas card was under an old business that i did not have any more but enjoy the card still.

Seems like this is an oxymoron. Creditors are simply people you owe money to. Just because you have some plastic in your pocket doesn't make them a creditor, unless you charge something. I figured your lawyer would know this.

[HHM]

Seems like this is an oxymoron. Creditors are simply people you owe money to. Just because you have some plastic in your pocket doesn't make them a creditor, unless you charge something. I figured your lawyer would know this.

To be fair to that attorney, there is dispute and difference of opinion on the issue of listing creditors with zero balances or certain types of creditors, like utilities (to whom you owe money, but really don't consider a creditor because it wasn't a loan).

The issue is one of notice. Some argue that because creditors are not allowed to extend you credit during your bankruptcy, that part of your duty as a debtor is to put ALL creditors on NOTICE of your bankruptcy regardless of whether you owe them money or not. As a practical matter, most credit cards (even if you don't list them) will find out about your bankruptcy sooner or later. Again, as a practical matter, the courts aren't overly concerned about zero balance accounts because the credit card company is not damaged by you filing bankruptcy.

If I were to take sides, I would say the law "REQUIRES" that you list "ALL" creditors regardless of balance. But as a practical matter, generally nothing bad will happen if you do not list creditors with a zero balance (so long as you don't use the card while the bankruptcy is pending (i.e. between filing and discharge).