Bankruptcy clients frequently have this question, and the quick and simple answer is NO: under penalty of perjury, all debts must be listed in a bankruptcy.
From consulting with hundreds of clients filing for bankruptcy, we have found that folks ask this question for one of three reasons.
“I Owe My Family or Friend Money”
First, a client may have borrowed money from a family member or close friend. These are special, trusted relationships that clients frequently want to honor by repayment of debt, even though not required by law. The Bankruptcy Code does not prohibit bankruptcy debtors from volunteering to repay debts after discharge—importantly, making payments does not waive the protections of the discharge order, so even if voluntary payments are made on a discharged debt, the creditor cannot harass or sue to collect the balance of the discharged debt.
“What about My Company Credit Card”
Second, the client may have a corporate credit card. If the client is personally liable for the corporate card, then the debtor owes the debt and must list the card in bankruptcy. Often, however, employees are just authorized users on corporate cards, rather than personally liable for the card and in those situations the employee’s card is rarely cancelled (but there are no guarantees on how any particular card issuer will react in any situation).
“What About My Car”
Third, the client may have in mind a car or house that’s financed on installment payments, wanting to keep paying in order to continue to enjoy the property. This is a topic that is too nuanced for a blog post, and should be dealt with in a consultation, with real numbers and other details.
A consultation with a bankruptcy attorney can help further answer this and other important questions. If you would like assistance with determining the best plan for you, we’re here to help. Simply click here or call (704) 377-4300 to speak to a member of our bankruptcy team.
We are a debt relief agency helping people file for bankruptcy relief under the United States Bankruptcy Code.
Disclaimer: We are attorneys, but we are not your attorneys and this article does not create an attorney-client relationship. The information in this blog post is provided for general information purposes only, and may not reflect the current law in your jurisdiction. No information in this blog post should be construed or seen as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter.