Is it legal to include an installment loan in a bankruptcy? 19 Answers as of October 07, 2013

Loan balance is $4500.

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Law Office of William Stoddard | William Stoddard
You do not tell me what the installment loan is, secured or non secured? In bankruptcy you must list ALL debts and ALL assets. So you have to list this debt. But characterizing what it is gives you the answer whether it is dischargeable or not.
Answer Applies to: Washington
Replied: 10/7/2013
Michael B. McFarland, P.A. | Michael B. McFarland
Yes, but because you asked that question, you really should consult with an experienced bankruptcy attorney for assistance. Filing a bankruptcy by yourself requires a certain degree of familiarity with the bankruptcy code. Absent that, you can be virtually assured that you will have problems with your case - which could easily cost more than the assistance of an attorney.
Answer Applies to: Idaho
Replied: 10/3/2013
Charles R. Chesnutt, P.C.
Charles R. Chesnutt, P.C. | Charles R. Chesnutt
Yes. All creditors must be included. It is illegal not to include it.
Answer Applies to: Texas
Replied: 10/2/2013
Law Offices of Linda Rose Fessler | Linda Fessler
Yes it is, but if it is a secured loan, you will lose the security.
Answer Applies to: California
Replied: 10/2/2013
Paul Stuber, Attorney at Law
Paul Stuber, Attorney at Law | Paul Stuber
When you file a bankruptcy, you file the bankruptcy and not the debts. You must include all of your debts and assets in the petition of bankruptcy. The question is if it will be discharged. An installment loan could be one that has collateral, such as a car, etc. If you file bankruptcy you will most likely have to pay on that in order to keep the car. If it is just a loan, and it does not fall into the non dischargeable types then it will be discharged in bankruptcy.
Answer Applies to: Colorado
Replied: 10/2/2013
    Mary Saur Cohn PLLC | Mary Saur Cohn
    Yes, you can and should include an installment loan in a bankruptcy case. If it is an installment loan for a secured debt (such as a vehicle loan), you may want to reaffirm (agree to repay) the loan in return for keeping the collateral (such as a vehicle).
    Answer Applies to: Michigan
    Replied: 10/2/2013
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    By law all your debts must be included. That does not however mean they are all discharged - or that security agreements are extinguished. You still owe on secured debts post discharge.
    Answer Applies to: California
    Replied: 10/2/2013
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    You MUST include ALL of your debts when filing for bankruptcy. What will happen depends upon the type of debt it is. If it is merely a signature loan it will be discharged. If it is a loan secured by collateral then you may have to choose whether to surrender the collateral or whether to continue to pay the loan.
    Answer Applies to: Colorado
    Replied: 10/2/2013
    Law Office of J. Thomas Black, P.C.
    Law Office of J. Thomas Black, P.C. | J. Thomas Black
    Absolutely you can include installment loans in a bankruptcy case, and discharge them. Of course if there is any collateral for the loan, and you want to keep the collateral, you would need to either surrender the collateral to the creditor, reaffirm the debt, redeem the collateral, or make some other agreeable settlement with the creditor.
    Answer Applies to: Texas
    Replied: 10/2/2013
    Danville Law Group | Scott Jordan
    Yes, you must include all debts and all assets in the schedules.
    Answer Applies to: California
    Replied: 10/2/2013
    Stuart P Gelberg
    Stuart P Gelberg | Stuart P Gelberg
    Yes. In fact you must list all debts.
    Answer Applies to: New York
    Replied: 10/2/2013
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Not only is it legal to include an installment loan in a bankruptcy, it is illegal to exclude any loan from your bankruptcy.
    Answer Applies to: Nevada
    Replied: 10/2/2013
    Law Offices of David A. Tilem | Michael Avanesian
    ALL loans must be listed in a Chapter 7.
    Answer Applies to: California
    Replied: 10/2/2013
    Idaho Bankruptcy Law | Paul Ross
    Not only is it legal, it is required. ALL debts must be included in a bankruptcy.
    Answer Applies to: Idaho
    Replied: 10/2/2013
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    You have to disclose all your debt.
    Answer Applies to: New York
    Replied: 10/2/2013
    Law Office of Barry R. Levine | Barry R. Levine, Esq.
    Why wouldn't it be? A debt is a debt.
    Answer Applies to: Massachusetts
    Replied: 10/2/2013
    Steele, George, Schofield & Ramos, LLP
    Steele, George, Schofield & Ramos, LLP | Alan E. Ramos
    When a bankruptcy petition is filed, it MUST include ALL debts and obligations, as well as ALL assets. This answer was provided as a public service to a question posed on the Law Q & A website. The answer is based on the information provided and is limited to those facts. Furthermore, the answer is based on California law and their application to bankruptcy law in California. Additional information could change the context of the question and materially change the answer.
    Answer Applies to: California
    Replied: 10/2/2013
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    You have to list all debts in a bankruptcy, including installment loans. Depending on what the installment loan is for, you may or may not to reaffirms. Discuss this with your lawyer so you know ahead of time what your options are.
    Answer Applies to: Michigan
    Replied: 10/2/2013
    Gottlieb & Goren, P.C.
    Gottlieb & Goren, P.C. | Aaron W. Goren
    Yes, but if you pledged collateral for the loan, you will lose the collateral unless you agree to pay its value.
    Answer Applies to: Michigan
    Replied: 10/2/2013
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