Legal Question in Bankruptcy in California

Alternatives to Reaffirming a Specific Debt?

My situation: I presently have about $30,000 in accumulated credit card debts with an annual income of about $24,000.

I have maintained an almost perfect credit history for 15 years, but was recently unemployed for several months and made some business investments that have not panned out.

One of my credit card debts is through my credit union (less than $2500) and I do NOT want to default on this account.

I have made recent payments on this account (along with occasional recent payments to a couple of other card accounts).

My question: Are there alternatives to discharging and then reaffirming this particular debt?

Since debts not listed on the bankruptcy schedules will not be discharged, can I (legally) choose not to list this account? But since I am still obligated to list recent payments, including this one, would this not appear to the trustee as a conflict and an attempt to favor this one creditor?

What are my options here?

Thank you very much for your help!


Asked on 12/30/97, 11:04 am

1 Answer from Attorneys
Mark Markus Law Office of Mark J. Markus

Alternatives to Reaffirming

You seem to be operating under a number of misconceptions and been receiving erroneous information. First, debts not listed on bankruptcy schedules ARE discharged under most circumstances. Second, you are required to list all your assets and all your liabilities in any bankruptcy petition. An intentional failure to do so is considered fraud and is investigated by the F.B.I. Third, you can voluntarily repay (reaffirm) any debt with a creditor after the bankruptcy is filed (assuming the creditor agrees). I will say that there is rarely a good reason for doing this, but many clients desire to do this on various debts. Fourth, you are only obligated to list the pre-bankruptcy payments to the credit union if they total over $600.00 in the 90 days preceding the filing.

I hope I have answered all your questions. If you need further assistance or desire representation for your bankruptcy, please visit my website below and then give me a call.

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Answered on 1/02/98, 6:02 pm


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