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Bankruptcy
Do I need to be notified if a borrower omits my debt in bankruptcy?

Do I need to be notified if a borrower omits my debt in bankruptcy?

Q: How much debt is too little to file bankruptcy?

There is no strict threshold for what constitutes 'too little' debt to file for bankruptcy. However, if your debt is manageable and you can repay it over time, bankruptcy may not be necessary. It’s advisable to evaluate your financial situation and consider alternatives before deciding to file.

Q: What is the minimum debt to claim bankruptcy?

There is no legal minimum debt amount required to file for bankruptcy. Individuals can file regardless of the amount owed. However, it’s essential to consider whether bankruptcy is the best option for your financial circumstances. Consulting with a bankruptcy attorney can provide clarity on your specific situation.

Full question:

An individual has borrowed 21 separate loans from me totaling over $17,000. He has made several payments to repay his debt to me. Now he is filing bankruptcy. If he decides to try to dismiss his debt to me, wouldn't I have to be notified? Would he still be liable to repay me if he doesn't list his debt to me during his bankruptcy procedings?

Category: Bankruptcy
Date: 04/07/2025
State: Indiana

Answer:

It is considered perjury to intentionally leave out a creditor when filing for bankruptcy. If a debtor fails to list a creditor, the debts owed to that creditor may not be eliminated through the bankruptcy discharge.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

How much debt do you need to file bankruptcy?

There is no specific minimum amount of debt required to file for bankruptcy. However, most people consider filing when they are unable to manage their debts, typically when they have significant unsecured debt, like credit cards or medical bills. It's important to evaluate your financial situation and consult with a bankruptcy attorney to determine the best course of action.

Should I file bankruptcy for $10,000 in debt?

Filing bankruptcy for $10,000 in debt may be considered if you are unable to repay it and it significantly impacts your financial stability. However, the decision should be based on your overall financial situation, including income, assets, and other debts. Consulting with a bankruptcy attorney can help you assess whether bankruptcy is the right choice for you.

How much debt is too little to file bankruptcy?

What is the minimum debt to claim bankruptcy?

What disqualifies you from filing bankruptcy?

Certain factors may disqualify you from filing bankruptcy, such as having filed for bankruptcy within the past eight years or failing to complete a required credit counseling course. Additionally, if you have committed fraud or have debts that cannot be discharged, such as certain taxes or student loans, these could also disqualify you. Consulting with a bankruptcy attorney can help clarify your eligibility.

How to get money back from a company that filed bankruptcy?

Recovering money from a company that has filed for bankruptcy can be challenging. You may need to file a claim in the bankruptcy case to seek repayment. However, the likelihood of recovering your funds depends on the company's assets and the priority of your claim. It's advisable to consult with a bankruptcy attorney to understand your rights and options.

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