Chapter 7 Bankruptcy
Often referred to as “straight bankruptcy,” Chapter 7 bankruptcy is a process, organized under federal law, that provides consumers with the opportunity to discharge their unsecured debts. Common debts eliminated by filing for Chapter 7 bankruptcy include: credit cards, medical bills, personal loans and mortgage debts. When a Chapter 7 case is filed, all of the debtor’s property is temporarily under supervision of the bankruptcy court and a case trustee. Property that is considered “exempt” is retained by the debtor; conversely, property that is “nonexempt” is subject to sale by the bankruptcy trustee with the proceeds distributed to creditors. It is important to note that as a practical matter, most people are able to shed their unsecured debts through Chapter 7 with out losing any property. A typical Chapter 7 bankruptcy case usually lasts between 4 to 5 months. At the end of the process, the bankruptcy court issues a discharge that operates as a permanent injunction preventing creditors from seeking to collect on debts that were included in the bankruptcy.
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Posted by: Erik Clark
When Creditors Come Calling After Your Bankruptcy Discharge
You don’t owe anymore after bankruptcy. Let’s repeat that: You don’t owe anymore after bankruptcy. So why are creditors still bugging you? The bankruptcy discharge eliminates your obligations to pay debts included in your bankruptcy filing. If you listed it and you received a discharge, then you are no longer responsible or liable for that…
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Posted by: Erik Clark
“Friendly” creditor phone calls and e-mails held to violate the bankruptcy discharge
Collection Efforts Prohibited by Bankruptcy Discharge Once you file for bankruptcy and receive your discharge order from the court, creditors are prohibited from attempting to collect on debts that were included in your bankruptcy, period. Section 524(a)(2) of the Bankruptcy Code explains that a bankruptcy discharge “operates as an injunction against the commencement or continuation…
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Posted by: Rob Cohen
Filing a Pro Se Bankruptcy is a Bad Idea
Filing a pro se bankruptcy case is a bad idea – Don’t roll the dice! For those of you who don’t know, pro se means that you file the case without the assistance of a bankruptcy attorney. When you file a bankruptcy case by yourself, you are held to the same standards as an attorney. …
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Posted by: Rob Cohen
Qualifying For Chapter 7 Bankruptcy: Timing and the Means Test
Filing date and chapter 7 bankruptcy If you are considering filing a Chapter 7 Bankruptcy case, you may be surprised to learn that the date you file may determine your eligibility for Chapter 7. This is because you must meet one of two requirements to file a Chapter 7 case: (1) you must be below…
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Posted by: Rob Cohen
What Happens to Tax Debt in Bankruptcy?
Will Bankruptcy Help With Tax Debts? In some cases, bankruptcy can eliminate back taxes owed to the IRS as well as to state governments, however the devil is in the details. It is certainly not easy to eliminate tax debts in bankruptcy court. If your taxes don’t qualify for discharge and you file for bankruptcy,…
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Posted by: Erik Clark
Chapter 7 Bankruptcy: What Every Consumer Needs to Know
Chapter 7 Bankruptcy Basics Perhaps you’re considering filing for bankruptcy and have some questions. Why is the word “liquidation” associated with chapter 7 bankruptcy? Why is chapter 7 bankruptcy called “straight” bankruptcy? Maybe you’ve met with a bankruptcy attorney who has reviewed your case and assured you that your property is safe from the bankruptcy…
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