I say that your credit report is a starting point - not every creditor is going to report to the credit bureaus so do not get caught in the trap of thinking that your report, no matter how current, is complete.
Those creditors that have a zero balance do not need to be listed, but otherwise you must list them all. Below is just a sampling of the various types of creditors that you may have:
- Credit cards,
- Medical bills,
- Student loans,
- Car loans,
- Unpaid taxes,
- Unpaid tickets (traffic, parking, etc.),
- Overdue storage fees,
- Obligations under leases or contracts,
- Personal loans,
- Promissory loans,
- Lawsuit judgments,
- Debts arising from traffic accidents,
- Domestic support obligations (child and/or spousal support),
- Fines, penalties and restitution,
- Property taxes,
- Intoxicated driving debts,
- Condo, cooperative and Homeowners' Association fees, and
- Loans from a retirement plan.
Once you have identified all of your creditors make sure that you have a current address, account number and amount owed. Frequently, the original creditor may transfer your account to a collection agency for follow-up. If this is the case, then go ahead and collect the information on both entities keeping in mind that the account numbers, addresses and amounts may change.
I mentioned previously that not all of your debts are discharged in a Chapter 7 Bankruptcy. For example, student loans and tax debts are not discharged unless you can prove that you are an exception to the rule. Also, Domestic Support Obligations like child support and alimony are not dischargeable. Additionally, debts owed to a spouse or child that were obtained through a divorce or separation are nondischargeable. Also, fines that were imposed by a federal, state or local government are not discharged. The list goes on - don't get discouraged, most folks considering Bankruptcy are dealing with overwhelming consumer debt such as credit cards and medical bills.
Interesting Facts
In 2010, in Virginia, approximately 23,949 Chapter 7 Bankruptcy Petitions were filed.
Approximately 85% of consumer filings were for Chapter 7.
The median average monthly income reported by all (nationwide) debtors was $2,872.
Chapter 7 cases were historically handled within approximately 150 days in Eastern VA.
The graphic to the left was obtained from the U.S. Trustee website and represents the number of Chapter 7 Petitions filed in Virginia for the period 1999 through 2009. Note the significant drop in 2006 - the year following the revision to the Bankruptcy Code.
If Bankruptcy may be in your future, please give us a call today and make an appointment. We'll take the time to listen to your situation and walk through the various options that may be available to you! You will not know unless you call!
(757) 410-9263
