If I file chapter 7 do I have to claim all of my creditors? My husband and I got a loan from our local bank. We live in a small town where everyone knows everyone else. We got the loan mostly because they know us. We don't want to cheat them out of their money because they gave us a loan with no colateral. Do we have to claim them on chapter 7 along with everyone else or can we exclude them and still make our usual payments?
2007-03-02 05:04:57 · 4 answers · asked by invictus 4 in Business & Finance ➔ Credit
Generally, you must declare all of your liabilities. One reason is that your solvency must be calculated; but the main reason is that all of your unsecured creditors must receive equal consideration. If you exclude a creditor from the filing, you are showing him preference over other creditors. This can potentially invalidate your bankruptcy protection.
2007-03-02 05:11:49 · answer #1 · answered by Rob D 5 · 4⤊ 1⤋
You can reaffirm with any creditors you wish. You will have to file on all of them, and have your lawyer draw up a reaffirmation agreement to submit to the creditors that you wish to remain in good standing with. However, this does not mean they will be excited about granting you future credit. You still have a bankruptcy on your credit report. Mortgage lenders typically ignore the bankruptcy after 4 years. Same with consumer lenders (car loans, home equity loans, etc.), but commercial lenders and places that demand a credit reference (many employers do this now), they will see it for 7-10 years.
2007-03-02 13:13:30 · answer #2 · answered by mykbuckley 2 · 0⤊ 0⤋
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2007-03-02 15:17:20 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I really don't know what to tell you but if i were you I would contact a real lawyer and make sure that i'm doing the right thing just because you want to make sure you are fair and pay them back they might try to take out extra interest if they are in debt some where nobody knows about
2007-03-02 13:18:50 · answer #4 · answered by mercedes d 2 · 0⤊ 1⤋