Why you should not include credit card or personal loan debt payments in Schedule J (Expenses)

When filing for bankruptcy, individuals must list all of their debts and expenses. Schedule J of the bankruptcy form is where you report your monthly living expenses. It may seem like a good idea to include credit card or personal loan payments when filling out Schedule J, however, this should not be done.

First and foremost, credit card debt and personal loans are generally unsecured forms of debt meaning that they are not backed by an asset such as a car or house. This type of debt tends to be discharged with other unsecured debts in bankruptcy proceedings within six months after filing for bankruptcy. Therefore, including these payments on Schedule J could delay the discharge process by singling them out from other dischargeable debts.

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