Legal Question in Bankruptcy in Texas

Not including certain debts

I have approx $25 in debts excluding my land, house and truck. I do not want these three things included in my bankruptcy. Can I do this? $10K of my debt is a secured loan (household items, furniture, electronics, etc.) but I don't have anything really of value now. I don't know whether they would come after them or not. I just want to keep these other 3 out of my bankruptcy petition if I file. If I do have to include them, can they do anything negative to me, even if they know I am going to pay?


Asked on 7/14/03, 4:26 pm

1 Answer from Attorneys
Michael Dover Michael A. Dover, PC

Re: Not including certain debts

You are required under the Bankruptcy Code to list all of your debts and all of your assets. For secured debts on your car and home, you can reaffirm those debts (sign an agreement agreeing to remain liable and repay those debts) and by doing so, and making the required payments, you can keep those items. For the $10K secured loan, the treatment of that loan will depend upon whether the loan is a "purchase money security interest". In other words, whether the lender advanced the money for the purpose of you purchasing those items. If it is not a purchase money security interest, then under the bankruptcy code, you can probably avoid (set aside) the lien on your household goods. Please call my office at 972-731-6733 and I will be happy to consult with you regarding your options.

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Answered on 7/15/03, 11:13 am


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