You should list all your debts when you file bankruptcy. But a debt may also get discharged if the creditor timely learns about your case. Last week’s blog post was about the importance of listing all debts in a bankruptcy case to write them off. Debts “neither listed nor scheduled” in the bankruptcy documents are not discharged (legally written … Read More
You must list all your debts when you file bankruptcy. So don’t skip any on purpose. Plus debts not listed you could still owe afterwards. Supposed to List All Creditors You can’t pick and choose which debts to include in your bankruptcy case. The U.S. Bankruptcy Code says that the first duty of a bankruptcy debtor is to provide … Read More
In most Chapter 7 cases nobody opposes your discharge of debts. They get written off. But the trustee is one who might raise issues. Last week we discussed the role of the Chapter 7 trustee in reviewing your assets at the “meeting of creditors.” Today we get into the other main job of the trustee, to, “if advisable, oppose … Read More
In a Chapter 7 case your unsecured debts are either priority or general unsecured. Chapter 7 legally writes off all or most of the latter. Last time we said there are two kinds of unsecured debts, “priority” and “general unsecured”: “Priority” debts are those that the law treats as special for various reasons. Past-due child support and unpaid recent … Read More
In our example of the adversary proceeding about whether a debt gets discharged, here is the bankruptcy court’s ruling on the matter.
If you decide not to settle but rather fight a creditor trying to make you pay a debt that you want to discharge, here’s what happens.
A creditor or a bankruptcy trustee could potentially object to the discharge–legal write-off–of ALL your debts. Very rare, and preventable.
Disputes in bankruptcy court requiring the judge’s resolution may be done so through an adversary proceeding.
If your liability dispute with your creditor spills into your Chapter 13 case, the bankruptcy court may be a good forum to fight it out.
If you object to a creditor’s proof of claim in your Chapter 13 case, and prevail in that dispute, you pay nothing on that debt.
The main goal of bankruptcy is often to write off–“discharge”–your debts. Here’s how it works in Chapter 7 “straight bankruptcy.”