Photo by Morning Brew on Unsplash Should you be incurring new debt if bankruptcy may be on your horizon? What are the risks and potential consequences if you do? Two weeks ago we listed 5 crucial things you’d benefit from learning about if you’re thinking about bankruptcy: if bankruptcy is indeed the best option for you how Chapter 7, 11, … 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
Overall, Chapter 7 deals with simple debts as well or better than Chapter 13 does, which deals with more difficult debts better. Debts in Bankruptcy When deciding between Chapter 7 “straight bankruptcy” and Chapter 13 “adjustment of debts” you look at many factors. You have to meet certain qualifications (usually easy to meet) to file either one. The amount … 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.
Here’s an example showing in a practical way what happens when a creditor objects to the legal write-off of a debt in bankruptcy.
“Discovery” covers all the methods used to get at all the relevant facts in a dispute with a creditor about the discharge of a debt.
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.
Chapter 13 payment plans usually have you pay something to all of your creditors. But not necessarily. Certain creditors may get nothing.
The main goal of bankruptcy is often to write off–“discharge”–your debts. Here’s how it works in Chapter 7 “straight bankruptcy.”