Can I leave out Certain debts from Bankruptcy Trustee
Many times debtors wish to keep a credit card or another form of debt outside of a bankruptcy. In both consumer chapters, all debt and assets must be disclosed and listed in the debtors petition and schedules. In fact the Trustee will ask each debtor under oath and penalty of perjury if everything is listed.
In the eyes of the Trustee, it is not fair that one particular creditor in the same class (unsecured) is paid more (as a %) than another creditor in the same class. For example, if debtor wants to list all credit cards except for credit card A and B, its not fair that they get paid more than the credit cards listed in the petition and schedules. Credit cards are treated as unsecured debts and they are basically last in the food chain when it comes to getting any type of distribution.
However, in the middle district of Florida, first priority mortgages on primary residences may be left outside of the Chapter 13 plan if they are current. This will help lower the overall Chapter 13 plan payment because the Trustee gets a 10% fee for all debt included in the plan.
If you have questions about Florida Divorces or Bankruptcy Law contact a Florida Attorney
Greg Gilbert
Keith Maynard
