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alternatives like debt consolidation, debt settlement, debt negotiation, and debt management.
You'll also learn the causes of debts that can lead you to file bankruptcy and how to recover
from it.How to Get Rid of Debt With Chapter 7 Bankruptcy Laws
A debtor filing for chapter 7 bankruptcy finds that lots more debts are discharged under the chapter 7 bankruptcy laws than filing any other types of bankruptcy. Most of the debts can be discharged under the chapter 7 bankruptcy laws but there are exceptions. Creditors are also restricted in their collection actions against debtors who file chapter 7 bankruptcy.
When filing chapter 7 bankruptcy, the debtor has to comply with all the chapter 7 bankruptcy laws for the filing to be accepted. Chapter 7 bankruptcy laws are complicated so many people seek the help of a bankruptcy lawyer who can help interpret the laws and ensure compliance of the filing process. If a debtor does not comply with chapter 7 bankruptcy laws, the case can be converted or dismissed.
Under the chapter 7 bankruptcy laws, creditors can file complaints and object against the discharge of their debts. If creditors do not object, the bankruptcy court will issue a discharge order based on the types of debts. The court often acts fast and a discharge order could be received only a few months after the first meeting of creditors.
Almost all chapter 7 cases result in discharge orders. However, there are exceptions. Examples of reasons why a bankruptcy court may deny a discharge is if the court finds evidence that the debtor tries to deceive the court, takes advantage of the chapter 7 bankruptcy laws, illegally transfers assets or hides assets to avoid liquidation. If there is any evidence that a crime has been committed, then the bankruptcy court will reject the case.
Even after the discharge order has been granted, secured creditors can still attempt to collect the assets used as collaterals for the debts. If a debtor does not want to give the asset back to the secured creditor, he or she can reaffirm the debt, pay the secured creditor and keep the asset even after the bankruptcy ruling.
Creditors are forbidden to harass the debtors once a discharge order has been granted. Secured creditors can collect the debts but unsecured creditors must stop all legal actions and harassment. If the debt has been sold to collection agencies, them too must stop all collection efforts after bankruptcy.
On top of secured debts, there are many types of debts that are exempt from the discharge under the chapter 7 bankruptcy laws. Examples of debts that will still need to be paid are alimony, child support, taxes and guaranteed loans. Chapter 7 bankruptcy laws are complicated and it is important to know which debts will be forgiven before filing.
About the Author:
Chapter 7 Bankruptcy Laws are often difficult to understand, yet it is extremely important that you grasp them fully if you’re thinking of filing for Chapter 7 bankruptcy. If you are, or are already in a bankruptcy situation, visit us at the Bankruptcy Laws Organization today to learn all about your bankruptcy options in plain English.
Saul Johnson | Chapter 7 Bankruptcy |
Tags: bankruptcy law, Chapter 7 Bankruptcy
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