Bankruptcy & Collections
Bankruptcy is the legal method for a debtor to discharge or relieve debt. One of the primary purposes of the bankruptcy act is to relieve the honest debtor from the weight of oppressive indebtedness and to provide the debtor with a fresh start. The Bankruptcy Code regulates what chapter you must file under, what bills can be eliminated, how long payments may be extended, and all other bankruptcy details.
Frequently Asked Questions
Will filing bankruptcy affect my credit rating?
Yes. However, most individuals are able to rebuild their credit within a few years.
How long will a bankruptcy show on my credit reports?
Credit reporting agencies may not report a bankruptcy case on a persons credit report after ten years from the date the bankruptcy case is filed.
Chapter 7
Liquidating Unsecured Debts
In a Chapter 7 case involving an individual debtor, the creditors generally have sixty days from the first date set for the meeting of creditors to object to the discharge of the debtor and/or the discharge ability of a specific debt. If the deadline passes without any objections to the debtor’s discharge being filed, the court will issue the discharge order. The foregoing represents an example of some of the details that you should consider with respect to the protection of items such as homes, cars, furniture or appliances. We consistently achieve expedited results through our rapid electronic case filing capability and even explore the viability of alternatives to bankruptcy.
Chapter 13
Reorganizing Debts
In a Chapter 13 case, creditors are given an opportunity to object to the plan. If no objection is filed by creditors or the trustee, the plan may be confirmed as filed. Once the plan is confirmed, the trustee will distribute the proceeds of the debtor’s plan payments to creditors until the debtor completes the plan or the court dismisses or converts the case. Upon completion of the Chapter 13 plan, the court will issue a discharge order; the trustee will prepare a final report and the case will be closed. The foregoing represents an example of some of the details that you should be mindful of with respect to the protection of items such as homes, cars, furniture or appliances. We facilitate rapid results through electronic case filing and even explore alternatives to bankruptcy.
