Legal Question in Bankruptcy in Minnesota

Re: Filing bankruptcy on a loan with your employer

When filing a bankruptcy, the debtor cannot pick and choose which debts to list. All debts and all assets must be listed.

So you would have to list the debt to your new employer.

However, there is a specific provision in the bankruptcy law which prohibits discrimination against someone because they file a bankruptcy. I can't say what they will actually do, but the employer is supposed to treat the employee as if nothing happened.

Reaffirming debt is usually a bad idea. If I was your lawyer, I would be against it. However, there is no law that says you can't pay a debt voluntarily after a bankruptcy just because you want to. If you wanted to consider doing that, it would be the best option if you feel you need to do something other than walk away from that particular debt.

Right now prior to filing your case you are in a touchy situation. There could be a problem with any payments you have already made to that creditor. If since the creditor is your employer the creditor would be considered an "insider," the trustee could possibly try to take money already paid away from that creditor.

You better get in to see a lawyer quickly before you do something that would really screw things up. You need to have someone review the meaning of "insider" with that employee-employer relationship in mind.

This response does not create an attorney-client relationship. It is for general information purposes only.