Listing Creditors

[southernbelle]

I have yet another question and really appreciate all of your continued support and assistance. I am making a preliminary list of creditors so that I can start early enough and hopefully won't forget anyone, but have a slight problem. Most of the debts I owe are business debts and aren't listed on my credit report which means it's really hard to tell exactly to the penny how much I owe some of these guys.

I searched the forum and found that it is good to list EVERYONE you could possibly owe, but do you just approximate how much you think you owe them or how is that handled?

I also have people that have threatened to sue the business and or me personally, but I don't know if they ever will for sure. I list them too right? I also have a company that took equipment and paid off the leases when I closed my business since I didn't have the money. The owners are now being difficult and are expecting the 10 year old "used" equipment work like brand new even though nothing is wrong with it (they have complained about paint scrapes). I am afraid that they will cancel their final credit card payments to the lease cos. and leave me out in the cold. Do I list their business, the owners and the lease company as a creditors even though the lease co. has been paid off and sent me a payoff notice?

The business part of this is making this complicated. Because lots of the type debts I mentioned makes it possible for me to file Ch. 7 since the business debt is more than 50% non-consumer debt. Is it possible for the trustee to say that I am making some of this debt up, because I really don't want to leave someone off that will sue me later. Thanks again.

[familyof7]

If the lease company was in fact paid in full what is the problem? If they have not been paid in full as of the day you file yes list them.

[CindyLou]

I would say if in doubt list them. Can't hurt. I would estimate what you owe. Do the best that you can. That is all that you can do.

[southernbelle]

Yes they were paid in full, but I am thinking that because they used a credit card to pay off the leases, then they would have recourse if they disputed the charges with the credit card company because they are knit picking everything that is completely normal for 10 year old equipment.

Eventhough the leases are paid off, if the charges are disputed then I am still ultimately responsible and they could come back to me for the money owed. I guess I wouldn't be so paranoid about it if it was a small amount of money, but if my credit has to take a significant hit by filing BK, I'm just trying to be thorough so that I don't have debts after the fact that amount to thousands of dollars.

[JRScott]

I would list all creditors, I would also list all those that might potentially sue you. You want to absolve your debt and ensure your new start.

I don't think they could dispute the purchase,especially if it has occured more than 60 days ago.

Good Luck.

[southernbelle]

Thanks. That gives me some peace of mind and I will just list everyone. What's the worst that could happen at this point? The list will be a long one. Is there such a thing as a creditor listed being questioned by the Trustee, especially since it will enable me to file Ch. 7 as opposed to Ch. 13?

[JRScott]

They will mail all creditors notifying them about the bankruptcy. It helps create the stay so they can't contact you.

Chapter 13 is usually determined by your income or desire to protect assets. If you have a lot of disposable income you could still be put into a Chapter 13 just so you have a warning about it.

In a Chapter 13 though only those that file claims will be paid money. If they fail to file a claim for funds then it would lower your payout and they would still be considered included preventing them from seeking further money at a future time.

[southernbelle]

I am above the median income for my state and based on the Means Test, it shows I have about $780 of disposable income, and the assets I have like the car and house are within exemption limits. All other equipment I have in storage (which is all I have of value) they can have.

Schedules I and J show less than $780 in disposable income. How probable would it be to force me into Ch. 13 with so much business debt or do Trustees mostly look at disposable income? Could it be also that they would like to see me pay back a %age owed if the disposable income exists? This seems like with my filing I will be rolling the dice.