Expert: Terry Leeders - 3/24/2007

Question
Hi-
I am thinking of filing bankruptcy because I can't keep up with most of my credit cards. I was thinking of filing chapter 7 myself to save money. Do I choose which debts I want to include in my bankruptcy or does the trustee do this? I have a bank loan for my truck which I pay on time and I want to keep my truck and keep making payments. Do I have to include this loan in my paperwork for a bankruptcy? What happens if I don't include it? Lastly, are you familiar with Verrant.com or similar sites? Is there a catch? Thanks for your time!

Answer
All debts must be listed in the bankruptcy petition.  You can select to 'reaffirm' certain debts.  Most consumers reaffirm financed items -cars, houses, jewelry, furniture and electronics.  You can usually keep the asset by agreeing to keep paying for it.  Now, your budget has to show that you can afford the payments, otherwise the judge could request that you prove how you can afford the payments if your budget shows you cannot.  I am aware that there are bankruptcy 'preparation' services out there, however they can only do just that...they cannot advise you which is the best chapter to file, cannot help you protect certain assets.  Therefore I strongly recommend contacting an experienced bankruptcy attorney.  I know I offer flexible payment plans and help my clients get back on their feet by helping them to obtain financing down the line for homes, cars etc.  Therefore, your bankruptcy attorney can offer much more than just typing your paperwork...you could almost do that yourself...