Why You Need a Bankruptcy Lawyer
Whether you are a consumer or a business owner, you need a bankruptcy lawyer who can advise you on all aspects of bankruptcy law. This is especially true in cases where your financial status is in dispute. Your lawyer will need to ensure that your interests are protected, and that the court will rule in your favor.
Discharges for individual debtors
Whether or not an individual can receive a discharge in bankruptcy is dependent on a variety of factors, including the nature of the debt, the circumstances surrounding its acquisition, and the nature of the bankruptcy itself. However, if the individual meets certain qualifications, he or she will receive a discharge in bankruptcy. Obtaining a discharge in bankruptcy provides a fresh start to the individual debtor. However, not all debts are dischargeable, and creditors may try to collect from the debtor.
Chapter 7 discharges debtors from most types of debt, including medical bills, utility bills, and dishonored checks. However, there are certain debts that are not dischargeable, including debts owed to certain tax-advantaged retirement plans. The bankruptcy code also restricts discharges of fraudulent debts.
Creditors may challenge the discharge of an individual debtor in two ways: by filing a complaint under Bankruptcy Code section 523 or by threatening to file a complaint if the individual is not given a discharge. The court will decide whether or not a claim is valid, and may impose a civil contempt order if the creditor violates the order. If the creditor does not file a complaint within 60 days of the date of the discharge order, he or she is considered legally discharged.
If the creditor does not challenge the discharge within 60 days, the creditor is not allowed to contact the debtor or pursue the debt. Unless the debtor files a motion with the court to sanction the creditor, the creditor can sell the discharged debt to a debt buyer. Creditors may also attempt to repossess the property that is pledged as collateral for the debt. If the debtor does not wish to surrender the property, he or she can “reaffirm” the debt, by voluntarily agreeing to repay the debt.
The bankruptcy court may also revoke an individual debtor’s discharge for fraud or other public policy reasons. These reasons could include the nature of the debt, the debtor’s behavior before and after filing for bankruptcy, and the debtor’s failure to take a personal financial management class. In addition to filing a complaint, the creditor must pay a retrieval fee. If the creditor fails to pay the retrieval fee, he or she will be subject to further legal action.
The discharge in bankruptcy is not only a court order, but also a permanent injunction that prevents creditors from collecting from the debtor. A creditor may also attempt to sell the discharged debt to a debt collector. However, if the debtor does not wish to sell the property, he or she may negotiate with the lender for a reduced loan balance. If the lender is willing to reduce the balance, the debtor can pay the lender the current value of the property.
Chapter 7 liquidation
Whether you are a sole proprietor, business owner, or a partner, Chapter 7 bankruptcy is a good way to get out of debt. It is a reorganization that wipes out most unsecured debt and gives you a fresh start. But filing bankruptcy is complicated and you should not attempt it without the help of a bankruptcy lawyer. A bankruptcy lawyer can help you protect your assets and minimize your damages.
When filing for bankruptcy, you will need to provide a list of all of your assets. The bankruptcy trustee will then determine which of your assets are nonexempt and which are not. Nonexempt assets are those that can be sold to repay creditors. In addition to physical property, the bankruptcy trustee can also sell intangible property, such as the balance in your savings account. Generally, debtors choose to sell items such as jewelry, automobiles, and luxury items to repay creditors.
The bankruptcy trustee will also ask questions about your assets. He or she will review your finances to determine if you are a good candidate for Chapter 7 bankruptcy. He or she will determine if your current income is less than the state median income, and whether you have an excess of expenses to which you may be exposed. If your current income is higher than the state median, you will have to pass a means test. If you are determined to be a good candidate for Chapter 7, you will be able to get a fresh start.
The bankruptcy trustee will then arrange a meeting with your creditors. At this meeting, the trustee will determine what assets you can use to repay your creditors. The bankruptcy court will then place an automatic stay on your creditors’ rights to collect money, which will stop them from evicting you, turning off utilities, and garnishing wages. However, some creditors may object to the discharge of debt that you have incurred in the past few months. You will then be able to repay your creditors a certain percentage of the nonexempt value of your assets.
After the trustee has completed the process of liquidating your nonexempt assets, you will be able to get a discharge of the remaining debt. The bankruptcy trustee will then distribute the money to your creditors. In some cases, the trustee will try to recover money that has been lost during the liquidation process.
You will also be able to keep certain assets, such as your home, automobile, and personal property. You can also choose to pay a nonexempt amount to keep your assets. However, you will lose other rights if you file bankruptcy without the help of an attorney. Those rights include the right to sue your creditors if you lose property.
In Chapter 7 liquidation, you will also have to sell some of your assets. In some cases, the bankruptcy court will allow you to keep all of your assets. In other cases, you will need to sell nonexempt assets to repay your creditors. However, if you file bankruptcy without the help of a bankruptcy attorney, you may lose some or all of your property.
