Category Archives: Chapter 7
Discharge of debt
One of the reasons people file bankruptcy is to get a “discharge.” A discharge is a court order which states that you do not have to pay most of your debts. Some debts cannot be discharged. For example, you cannot discharge debts for: * most taxes; * child support; * alimony; * most student loans; [...]
Bankruptcy Terminology
In Bankruptcy, a “case” refers to the bankruptcy action commenced by filing a bankruptcy petition, and “proceeding” refers to a specific matter, such as an adversary proceeding, that arises within the bankruptcy case. The “debtor” is the party that either filed a voluntary bankruptcy petition or that had an involuntary petition filed against it. The [...]
Bankruptcy Discharge
I know many of you want to know – what does discharge mean to me? In the world of bankruptcy getting a discharge means that the court is discharging your debts. That means that your creditors can no longer go after you for your debts. At least those that were discharged.
Means Test
Chapter 7 is the bankruptcy relief most often sought. On filing, all assets pass to an estate administered by a trustee, who liquidates all nonexempt assets of value. Creditors can file claims against the assets and the claims are paid in accordance with the Code. If you are an individual, you can get a discharge [...]
When to file bankruptcy
Timing is frequently an important consideration with respect to the filing of a bankruptcy case. When you have made a transfer to or for the benefit of an insider, you may wish to wait until the one year preference period or the two year statute of limitation has expired. When you owe state or federal [...]
Automatic Stay
Once you file your application for bankruptcy, an automatic stay is place on your case. What this means is that none of your creditors are able to proceed with any collection attempts against you. This also ensures that all your creditors are place in the same equal position so that no one can do anything [...]
Case Trustee
When a chapter 7 petition is filed, the U.S. trustee (or the bankruptcy court in Alabama and North Carolina) appoints an impartial case trustee to administer the case and liquidate the debtor’s nonexempt assets. 11 U.S.C. §§ 701, 704. If all the debtor’s assets are exempt or subject to valid liens, the trustee will normally [...]
Big Step
Filing for bankruptcy is a big step. One that will follow up around for seven to ten years, depending on the route that you take. If you file for Chapter 7 , most of your unsecured debts are written off within 90 days of filing. The bankruptcy will stay on your credit report for 10 [...]
Individual Bankurptcy Filing Surge
The state of Massachusett has seen a spike of 35% in Chapter 7 filings in the last nine months. There were 11,872 Chapter 7 filings from January through September compared to 8,777 filing during the same period a year earlier. This year’s bankruptcy-filing totals are the state’s highest since 2005, when federally mandated changed to [...]
Chapter 13 vs Chapter 7
You should consider a Chapter 13 plan if you can work out a way to pay off part of your debts over a period of time and still afford the reasonable costs of living. The law says you can use a Chapter 13 plan if you have a steady income. This means you work for [...]