What debts can be included in a bankruptcy?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What debts can be included in a bankruptcy?
I am currently in the process of working through a dissolution agreement and one of the debates is if and how much we owe my mother-in-law and if that will go in to the dissolution. My husband has gotten me in to a financial bind with 2 garnishments that will “never” be paid off because they are adding interest at 25% and that is what they are garnishing so I know I want to do the bankruptcy anyways. Just want to know if the in law amount can be included.
Asked on August 22, 2011 Ohio
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
When you file bankruptcy, you will need to list all creditors and the amount owed to each creditor. The debt owed to your mother-in-law should be included in your bankruptcy. Depending on your income and other factors, you may be eligible to file Chapter 7 bankruptcy. Chapter 7 is straight liquidation which eliminates your debts. You can also indicate in the bankruptcy that you intend to reaffirm the debt which means continue paying. You do NOT have to reaffirm a debt.
If you are not eligible to file Chapter 7, you may need to file Chapter 13. A Chapter 13 bankruptcy is one in which you have a plan (budget) for repayment of creditors.
To determine whether you are eligible for Chapter 7 or Chapter 13, it would be advisable to speak with a bankruptcy attorney.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.