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Do I have to file bankruptcy on all of my creditors?

Mon, Apr 25th, 2011
Posted in Ask the Expert

Scott Springer

Yes, but that doesn't mean that you can't pay some of your creditors. When bankruptcy is filed, you must list all of your debts and all of your assets. But you are allowed to pay any debts that you wish after filing, either by reaffirming the debt or simply continuing to pay the debt. If the debt is reaffirmed, it must be paid under the terms of the reaffirmation agreement, but if you just continue to pay the debt without reaffirming, you do so without any legal obligation.

Usually you pay a debt without legal obligation in one of two situations - to a family member, or to a secured creditor. Family members who loan you money get paid because if not, you'll probably have a lousy family Christmas. Secured creditors are paid because if you don't, they can still come get their collateral (usually your house or car).

For answers to all of your bankruptcy questions give us a call.

Springer & Gumbel, P.A.

141 W. Fillmore St., Preston, MN

Phone (507) 765-3600

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