Consumer Law

Bankruptcy's Relationship To All Your Debts

By M. Stan Herring

The Bankruptcy Law Network has posted an article which gives some good information that you should know prior to filing bankruptcy. When you file any chapter of bankruptcy, you are required to list all debts you may have as well as your assets. Failing to list everything can have very serious consequences, such as being guilty of perjury.

According to Douglas Jacobs, the writer of the article, all of your debts have to be listed, regardless or not if you want the bankruptcy to include a certain credit card or other obligation. Once everything is listed, there's no law that says you are obligated to pay the debt back, but you can if you want to.

There are two ways to repay someone after you have filed for bankruptcy. The first is to simply pay what you can when you can. You can also sign a "reaffirmation agreement," which is basically a contract that is filed in bankruptcy court that legally obligates you to make regular payments of a designated amount. This does away with discharging the original debt and you are required to pay it. Signing a reaffirmation agreement is usually a bad idea, you should consult with a bankruptcy attorney before doing so. Why would you want to reinstate a debt after it has been discharged?

If you have interest in filing bankruptcy and have questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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Full post as published by Alabama Consumer Blog on September 13, 2010 (boomark / email).