Every creditor you owe must be listed in your bankruptcy. This post explains the difference between secured and unsecured creditors and what it means to retain and reaffirm a secured debt in a Chapter 7 bankruptcy.
Frequently Asked Questions
Do I have to list every debt I owe when I file bankruptcy?
The answer is yes. Every creditor that you do owe a debt to does need to be listed in your bankruptcy. Now there are different types of creditors. There are secured creditors and unsecured creditors. A secured creditor is any lender that has collateral, such as your vehicle loan, because they hold the title to your vehicle.
When you file a Chapter 7 bankruptcy, you have the option to retain and reaffirm on secured debts. That means that you are agreeing that even though your other debts are being wiped out, that debt will not be wiped out by the bankruptcy, and you’ll continue to make the payments and be liable for that payment on that specific debt.
Are you struggling financially? Pratt & Maegli Law Firm in Rockford helps Illinois families and individuals explore Chapter 7 and Chapter 13 options with clear answers and a personal approach. Call (815) 315-0683 or visit rockfordbankruptcytoday.com to schedule a confidential consultation and take the first step toward real financial relief.