Excluding Debt from Bankruptcy
Learn About Excluding Debt from Bankruptcy
Wondering if excluding debt from bankruptcy is possible? Watch this video by Michael F. Barrett, an experienced Buffalo Bankruptcy Attorney for guidance. If you have questions about your particular situation and what options are available for debt relief, contact us to schedule a consultation. Let our 45 years of experience work for you.
Sometimes a person who is interested in filing for bankruptcy wants to exclude a specific debt from the bankruptcy – most commonly, that’s a debt owed to a family member or friend. The fact is that you can’t exclude a debt from bankruptcy. You must list all your existing debts under penalty of perjury. However, the reality is that, after your bankruptcy is completed, you can pay back whoever you like. For example, if you owe your aunt $10,000 when you file for bankruptcy, you must list that obligation to your aunt in the bankruptcy. Then, you can pay her just as you would have paid her otherwise.
- When a person contemplating bankruptcy wants to exclude a specific debt from the bankruptcy, it’s usually a debt owed to a family member or friend.
- The truth is that debts cannot be excluded from bankruptcy. You must list all existing debts.
- In reality, however, you can pay back whoever you like after your bankruptcy is completed.
- You must list every obligation in the bankruptcy, and then, you can repay them just as you would have done otherwise.