The Bankruptcy Code requires debtors to list all debts in their bankruptcy paperwork (called “schedules”).  You cannot pick what debts to include in your bankruptcy and what ones to leave out.  This is true for both Chapter 7 and Chapter 13 bankruptcy.

I often hear clients say something like, “I don’t want to file on my house” or “I don’t want to file on my car.”  I know what they mean.  They mean that they want to keep their house and car and continue paying these debts.  It’s logical for them to think that because they are not trying to get out of paying these obligations, these debts can be left out of their bankruptcy schedules.  But they are incorrect.

The good news is that even thought these types of debts must be listed on your bankruptcy schedules, you can–almost always–keep your house and car as long as  you continue to make timely payments to those creditors.

Just keep in mind that you are filing bankruptcy on all of ” it.”

Related posts:

1. Domestic Support Obligations in Bankruptcy (Part Three)
2. “The Bank Just Froze My Account!” (Setoffs and Bankruptcy)
3. Filing Bankruptcy: “Will I Hurt My Wife’s Credit When I File?”