Posted on: June 17th, 2023
In a Chapter 7 bankruptcy, you are generally not able to exclude creditors. Chapter 7 is a process designed to provide you with a fresh financial start. However, there are certain debts that cannot be discharged in bankruptcy, such as child support, alimony, certain tax debts, and student loans (in most cases).
You are required to provide a complete list of all of your debts and creditors in your bankruptcy petition and schedules. This ensures that all creditors are notified of the bankruptcy proceedings and can participate in the distribution of assets, if any.
While you cannot exclude specific creditors, you may have the option to reaffirm certain debts. A reaffirmation is a voluntary agreement between you and a creditor in which you agree to remain legally obligated to repay a specific debt, despite the bankruptcy discharge. Reaffirmed debts are not discharged in the bankruptcy process and the you are responsible for continuing to make payments on those debts. However, a reaffirmation is subject to court approval, and you should exercise caution when considering reaffirming debts to avoid undue financial burden.
For more information on bankruptcy, contact Barco Law, APC to schedule a free office consultation in the Fresno/Clovis area.