Below is a list of the most common customer questions. If you can’t find an answer to your question,
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Should I tell my creditors that Im filing bankruptcy?
Your bankruptcy attorney is in the best position to instruct you whether to tell your creditors that you intend to file bankruptcy. For many, the answer is Yes, but there are special circumstances when it is best to avoid disclosing a pending bankruptcy action. Consult with your attorney and get the advice you need.
What happens if you forget to list a creditor?
Intentionally omitting a creditor or debt is a crimeone that will cause you to lose your right to a discharge and can land you in jail. And even if you inadvertently omit one, the creditor may claim you've done so on purpose, forcing you to litigate that issue in court.
What do you tell creditors when they call?
The collector must send you a written validation notice telling you how much money you owe within five days after they first contact you. The notice must include the name of the creditor to whom you owe the money.
What happens if a creditor objects to Chapter 13?
The trustee (or a creditor) can object to the Chapter 13 plan if it appears that someone isn't getting paid the right amount. A judge has the final say, however, and will either approve or reject the plan at the confirmation hearing.
Do most creditors file claims in Chapter 13?
Chapter 13 cases are usually 3- to 5-year payment plans. You would usually file one so that you could focus on paying certain special debts. The creditors on those debts all receive notice of your case. They are required to file a proof of claim stating how much you owe and the nature of the debt.
Do creditors get paid in Chapter 7?
No property is liquidated, and it allows debtors to start payment plans to repay their creditors. In Chapter 7, where non-exempt property is sold, the creditors are paid from the profits by priority. In Chapter 11 or 13, the creditors are repaid according to the repayment plan, which must conform to the priority rules.
What happens at creditors meeting in Chapter 7?
The Chapter 7 meeting of creditors (also called the 341 hearing) is a meeting at which the bankruptcy trustee and your creditors get to ask you questions under oath about your bankruptcy petition and the documents you're required to provide to the trustee.
In what order do the creditors receive payment?
If a company goes into liquidation, all of its assets are distributed to its creditors. Secured creditors are first in line. Next are unsecured creditors, including employees who are owed money. Stockholders are paid last.
What is dischargeable bankruptcy?
Dischargeable debts are obligations that can be wiped out by your bankruptcy discharge. When you receive your discharge, you are no longer obligated to pay any of these debts and creditors cannot come after you to collect them. A few examples of dischargeable debt include: credit card debt. medical bills.
How bad is declaring bankruptcy?
Filing for bankruptcy has a bad reputation in many circles due to the fact that it damages your credit and involves discharging debts that will likely never be repaid. Filing bankruptcy to discharge credit card debt at 29% interest would not be considered bad by most people.
What is the downside of filing bankruptcy?
Filing Bankruptcy: The Cons The first downside to filing for bankruptcy is that despite helping you out of debt, it will not eliminate all your debts. The following are some of the debts that will remain after filing for bankruptcy: Your most recent back taxes. Most student loans.
Are judgments dischargeable in bankruptcy?
If a creditor gets a judgment against you and the debt is dischargeable in a Chapter 7 bankruptcy (not all obligations are), filing for bankruptcy will wipe out a creditor's ability to collect. Judgments, however, create a lien on your property. And liens don't go away in bankruptcy automatically.
Should I file bankruptcy before or after a Judgement?
In general, it is best to file a bankruptcy case before a judgment is entered after a lawsuit. Usually, if a lawsuit has been filed or a judgment has been entered against you, it does not change whether you can discharge that debt in bankruptcy. But not all debts can be discharged in bankruptcy.
Is a Judgement worse than bankruptcy?
Bankruptcy will damage your credit in the short term, but will let you recover fast, while the judgment is going to chip away at your credit to a point that it will be impossible to recover.
What debts are not dischargeable in Chapter 7?
Not all debts can be discharged, however, and several are very difficult to discharge. The most common types of debt to avoid discharge include tax liens, student loans, alimony, debts obtained through fraud, debts for willful injury or wrongful death, and debts where the borrower was acting in a fiduciary capacity.