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Schedule F. Do I need to list all accounts on my credit report, or only the debts I want discharged?

San Diego, CA |

Is there a need to list accounts with a zero balance, whether they are closed or open? Will the discharge of a debt also close the account its attached to? I'm thinking its probably best to leave the satisfactory accounts with a zero balance the way they are. Can I not list them and continue to use them? Or does everything need to be listed, whether or not I want it discharged, reaffirmed, kept open, etc.?

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Attorney answers 6

Posted

All of them. Your debts are discharged, anyway, whether you want them to be or not, it's not a choice. You can reaffirm, but that's different.

Asker

Posted

Ok, so am I thinking too hard by making the distinction between "debts" and "accounts"? Because to me an account with a zero balance is not a debt until there is a balance. And what about years old accounts that were paid on time every month and are now closed? What happens to those?

Robert A. Stumpf

Robert A. Stumpf

Posted

I know of no relevant distinction between debts and accounts for this purpose. Do you have to list zero balance accounts? As a general practice I do, but I would agree it can be optional. The same thing happens to every single dischargable debt that existed before the day you filed your petition. They are discharged, very likely if they are listed or not.

Asker

Posted

Thank you, that clears things up on that. One more question regarding my timeshare: I know I can get the answer if I look at the sales contract, but are the debts in these contracts usually secured by the timeshare deed if there is one, or the timeshare as an asset?

Robert A. Stumpf

Robert A. Stumpf

Posted

Yes, the timeshare is considered an interest in real estate that would likely go in most cases on Schedule A.

Deborah F Bowinski

Deborah F Bowinski

Posted

There can be several different types of debts associated with time shares. If you have a mortgage loan for the purchase inthe timeshare that is a secured debt just like a mortgage for a home. If you have HOA or management fees that are past due then those are probably secured as well. If the timeshare is worth more than is owed it is likely to be a non-exempt (unprotected) asset. I suggest you consult with a local bankruptcy lawyer - this stuff is complex and you can end up losing far more than the cost of a legal fee by filing on your own and making mistakes.

Helene Thaissa W. Bergman

Helene Thaissa W. Bergman

Posted

I advise clients if the account has a zero balance, it is not a debt. Do not list. Sometimes they keep the card, sometimes not. I hate credit cards. Period. Get rid of them, and pay as you go. You don't need them in an emergency,. Set up an emergency fund. You don't need them to travel. Use your debit cards. Stop financing your life away.

Robert A. Stumpf

Robert A. Stumpf

Posted

I would make them list it usually, because it's easier to remove those items from the debtor's credit report later if they are listed. There is little if any downside to listing them. I hate credit cards too.

Helene Thaissa W. Bergman

Helene Thaissa W. Bergman

Posted

Good to know. Thanks for the info.

Posted

You must list all creditors you owe money to on the day of your filing. You do not get to choose whether you list a particular debt.

Most credit card issuers close all accounts (zero balance or not) when they learn of a bankruptcy filing. You should not expect the accounts to remain open.

I would not advise using any zero balance accounts during the time you are in your case. Excess use of credit is probably part of the reason you are filing bankruptcy. Take advantage of your fresh start by building new habits right away.

Asker

Posted

Excellent advice, thank you very much. To be clear, I DON'Tneed to list creditors from accounts that are years old with a zero balance and no negative reporting, and have since been closed???

Maureen Andrea Enmark

Maureen Andrea Enmark

Posted

Correct. Accounts with a zero balance do not need to be listed.

Asker

Posted

What if I own a car that I want to keep and the outstanding loan is more than its value? I know I need to reaffirm the debt, but do I list it as exempt or non-exempt? (I was under the impression that only assets with equity can be claimed as exempt using the applicable exemptions??)

Maureen Andrea Enmark

Maureen Andrea Enmark

Posted

Our office offers free consultations where we explain more about how bankruptcy works. I am also always glad to answer quick questions on the phone for people in the San Diego area. (619-260-1800)

Posted

Credit reports are not proof that you do or do not owe a debt. They are only reports of what a creditor says is owed at any particular time.

The law requires you to list all creditors you owe or who claim you owe them. If a creditor says you owe $0 and you know that the balance is $100, list the debt. If the creditor says you owe $0 and you have not used the account and know that the balance is $0, it is not a debt and you don't list it. If the creditor says you owe $2 and you believe you paid off the debt, list the debt & indicate that you dispute the debt.

Hope this perspective helps!

Posted

All creditors who are owed money on the date of the filing of your Voluntary Petition must be listed.

No attorney/client relationship is formed between the attorney responding to this question and the individual asking the question.

Posted

List all creditors you owe money to on the date you file, expect these creditors to cancel your credit cards. As to cards you do not owe money to, they will in all likelihood also cancel.

Legal disclaimer: Disclaimer: This answer does not constitute legal advice. I am admitted in California and Pakistan only and make no attempt to opine on matters of law that are not relevant to California or Pakistan. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. Consult an attorney in your locale before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney client relationship.

Posted

There is no need to list accounts with a zero balance on Schedule F. They are not "creditors".

However, if it has a balance, then it MUST be listed, you cannot pick and choose which creditors you would like to list on the bankruptcy petition.