Creditors when Filing Bankruptcy
When you file a bankruptcy, you have to include all of your creditors that you owe money to. You do not get to choose which ones you get to keep or which ones you are going to file bankruptcy on. Any creditor that you owe money to has to be listed. That even means that your mortgage company and the creditors that have liens on the cars. Many people who file Chapter 7 and even Chapter 13 misunderstand this and don’t think that their mortgage and their cars are included in the bankruptcy. The only way not to include it would be to have it paid off. The same would be true with unsecured creditors. If you don’t want them included, then you pay them off at a zero balance and they won’t be included. You have to be careful when you do things like that, because the trustee may see it as favorable treatment. Consult your attorney if you have any questions about your creditors in your bankruptcy.
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