Yes, unfortunately, you do.  Although a loan from mom or a cosigning on a car loan from dad is not an unusual occurrence, the bankruptcy laws seek to treat all creditors alike, which means listing all of your debts, no exceptions.  I understand how this might lead to embarassment or a strained relationship with that friend or family member, but not listing them can have serious consequences, not the least of which the denial of your bankruptcy discharge!  Here is how you handle it.

As part of the bankruptcy process, speak to the friend or family member before you file.  Explain to him or her that you are legally obligated to list the debt and have it discharged in the bankruptcy.  However, and this is the good part, it does not prevent you from paying the debt back after the bankruptcy is over.  The discharge will remove their ability to make you pay the debt through a law suit, but it does not remove your right to pay voluntarily, should you wish to.  Tell them that you have to list them, but that you will pay them back.  This will allow you to comply with the law and (hopefully) preserve your relationship with that friend or family member.

Complying with all of the requirements, and staying out of trouble for running afoul of them, is critical to your obtaining a fresh start.  Consult with my office about your case and get the necessary guidance to insure that you get your fresh start!

The Law Office of Steven J. Richardson serves New Jersey, including:  Gloucester, Camden, Burlington, Salem, Cumberland and Atlantic Counties and surrounding New Jersey communities, including Woodbury, Colonial Manor, North Woodbury, Woodbury Heights, Deptford, Thorofare, Gloucester City, Washington Township, Blackwood, Brooklawn, Westville and Pitman.

Richardson Law Offices
40 Newton Avenue
Woodbury, NJ 08096
Phone: (856) 686-9910
Fax: (856) 686-9911