If I Owe a Family Member Money, do I Have to List Them as a Creditor?
Lots of folks ask family memebers for help in rough spots, and that's quite normal. Afterall, what is family for? To help eachother out, hopefully. The question we receive most often is, when faced with bankruptcy, is a family member who so generouly helped you out considered a creditor? Even though they are family, the correct answer is yes, they are a creditor for bankruptcy purposes.
So if a family member is considered a creditor to the bankruptcy court, do you have to list this family member as a creditor? Yes you do. Any person or entity you owe money to must be listed as a creditor on your bankruptcy petition. Many fear having to do this whether it is because they don't want their family member to know they are filing for bankruptcy or they want to pay them back someday.
The good news is that even though you have to list the family member you owe money to as a creditor on your bankruptcy petition, you can still pay them back. If you get a discharge, will your discharge apply to this family member? Yes it will, however, you may still choose to pay them back after your bankrutcy is over. This applies to any creditor on your bankruptcy petition. So please don't make the mistake of not listing someone you owe money to on your petition, even if you do want to pay them back. You can always pay them back later.
If you have any questions about these or any other bankruptcy issue, please don't hesitate to call our office at 480-355-1377, and speak to an experienced bankruptcy attorney.
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