Monday, February 20, 2012


Many people start a bankruptcy just to get the creditors off their back.
A chapter seven bankruptcy is by far the most popular. In Chapter 7 bankruptcy you fully disclose your property, debts, and financial activities. Three months later you receive a discharge or cancellation of debt.


You should emerge from Bankruptcy with all or most of the property you owned going in. Creditors cannot contact you about the old debt after the bankruptcy and no contact can be made about current debt after the bankruptcy filing.

In our Bankruptcy Practice clients often tell us how poorly they are treated by creditors. These bill collectors often violate federal and state law preventing unfair collection practices- such as contacting you when you have told them you cannot repay the debt. Laws let you take a law breaking creditor to Federal Court. You can get damages for harm to you . Emotional distress is one such damage.

A Bankruptcy Chapter 13 plan is designed with debtors with income who need time to get certain debt paid up to date and still discharge others. Chapter 13 requires a plan that with circumstances changing you may not be able to complete.

You may be able to convert your Chapter 13 case into a Chapter 7 case at any time as long as you qualify for Chapter 7 under the rules. The courts might not allow the conversion.

When you convert you do not have to file another filing fee. and your creditors are still prohibited from taking action against you. Unless the court objects you can always dismiss your case and file again.
One of the most powerful features of bankruptcy is that it stops most debt collectors from harassing you. Once you file for bankruptcy all collection activities with a few exceptions must stop. The creditors must go through the court to take any further action against you.

As stated there are a few exceptions to this automatic stay ; collection of child support, alimony, and certain enforcement actions of the IRS.

Sometimes even while you are in Bankruptcy creditors still attempt to collect using the courts procedures. A creditor who wants to collect from you directly may request relief from the automatic stay in order to do so. This is called a "relief from stay" hearing. This could come up for example if you are behind on your mortgage or car payments.

In a very simple chapter 7 case you will probably have to attend only one official proceeding the creditors meeting supervised by the trustee. The trustee may schedule a second meeting to get additional information. Other issues may require a meeting with the Judge.

Most importantly your creditors from these debts must stop harassing you.

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Sara said...

Filing bankruptcy is the last step in order to get rid of your debt and mortgage problems. When all the other options fail to get you out of your debt and mortgage problems, you should consider the option of bankruptcy filing. Out the different types of bankruptcy filing, one can opt for Chapter 7 bankruptcy filing in order to get a discharge from his/her unsecured debts. A bankruptcy lawyer will be the best person to help a person to file Chapter 7 bankruptcy. However, there are certain debts like student loans, child support, IRS taxes, etc. which don’t get a discharge in this bankruptcy filing and the consumer is liable to pay them in full.

loopbankruptcy said...

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