March 6th, 2010 by Questions
I have family debt as well as comsumer debt. Can I not include family debt in the bankrutpcy?
Posted from: British Columbia
March 07, 2010 at 8:04 am, A licensed trustee said:
Not legally. The law requires you to list anyone that you owe more than $25 to if/when you file for bankruptcy. If you exclude family debt and the Court becomes aware of it then they have the right to refuse your discharge – in other words none of your debts will be discharged.
Having said all that, the act of filing for bankruptcy provides you with protection from your creditors. Once you have been discharged from bankruptcy you cannot be compelled to repay any of your pre-bankruptcy debts, BUT you can choose to repay anyone you want.
So list the family debt, explain to them you have to under the law, and if you are able to repay them after you have been discharged you may do so legally.
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