Legal Question in Bankruptcy in Indiana

Married, filing chapter 7 on debt before married keeping spouces assets

I have debts from before marriage and want to file chapter 7. My spouce is sole borrower on our

home but we had to do a quick claim deed because I have a note to my employer against the equity. I also have nearly paid off a vehicle that my parents loaned me the money for. Can I file on my old debts without revealing these 2 debts since they won't show up on a credit report? If I have to reveal these 2 loans to the court, do they have to be informed about the proceedings? Since the note and the loan from my parents don't show up on a credit report, would this equity be considered available to the administrator for distribution to my old creditors? Thank you!


Asked on 1/03/02, 2:57 pm

2 Answers from Attorneys
Dorene Philpot Philpot Law Office

Re: Married, filing chapter 7 on debt before married keeping spouces assets

When you file a bankruptcy petition, you sign it under penalties of perjury, stating that you are listing all your debts and assets.

Yes, all your creditors would be notified of your bankruptcy.

However, you can choose to reaffirm on the debts you wish, so those folks would not be hurt by your bankruptcy proceeding.

You are allowed to keep $15K in home equity if you file as a married couple.

Hope this information helps.

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Answered on 1/04/02, 7:54 am
John Cook Dunn & Cook

Re: Married, filing chapter 7 on debt before married keeping spouces assets

Yes, you have to show all of your debts. However, the fact that your car is almost paid off is more important than disclosing the loan to your parents, as the equity in it may be greater than allowed in Indiana ($4,000 equity in personal property). You can always reaffirm on the debt owed to your parents, but most Chpt 7 Trustees do no like to see debtors reaffirm on an unsecured debt, including those to relatives.

I do not understand what you are saying regarding the house and the quitclaim deed. If the note to your employer is collateralized by the house, and it was correctly done, then this is a secured debt on the house and would have to be listed.

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Answered on 1/05/02, 5:54 pm


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