If I intend to keep my car and I’m willing to continue payments, do I have to list the lienholder or lessor as creditors in my bankruptcy schedules?

Yes. You must list ALL creditors and lessors in your bankruptcy schedules regardless of you intention on the collateral. If you are always current on your payments, insured the collateral, and reaffirmed the debt in your bankruptcy case, the lender or lessor cannot repossess the collateral.

Upon filing your bankruptcy petition, your lender or lessor is less likely to continue sending you monthly statements for fear of violating the automatic stay provision of the bankruptcy code. So if you want to keep your car or house, you must make your payments on time even if you don’t receive your monthly statement. If you do not make timely payments, your creditor can repossess your car or foreclose your house. Non-receipt of billing statement is no defense to nonpayment and will not reverse a repossession or foreclosure.

Call to schedule a Free Consultation with an experienced Sacramento Bankruptcy Attorney at Sacramento, Stockton, or Fairfield, California office.