Tag Archives: Chapter 7
Declaring bankruptcy doesn’t have to be intimidating or scary; in fact, the process is quite simple and can leave you feeling immensely relieved. Filing bankruptcy is often the best solution for people struggling with debt, but it’s not the only option. You may be wrestling with the decision to either continue paying off debt or file bankruptcy. Sometimes, knowing when it’s time to file bankruptcy can be difficult. The short answer is to file when you have more debt than you could feasibly pay off, but situations are often more complicated than that. Benefits of Bankruptcy Both Chapter 7 bankruptcy and Chapter 13 bankruptcy offer what is called an “automatic stay”, which effectively stops all harassment, collection, repossession, and foreclosure actions. Chapter 7 bankruptcy often allows individuals to walk away from most or all of their debt, completely free of it, within a few short months. Chapter 13 bankruptcy can…
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If you receive a notice that one of your debts has been charged off, don’t start celebrating just yet. Charged off debt often gives borrowers the impression that they no longer owe that amount. However, while the debt does appear to be gone, “charged off debt” is not the same as “discharged debt”. What Does “Charged Off” Mean? A debt that has gone unpaid for more than 180 days will typically be charged off, which means that the creditor that holds the debt has taken it off of its accounting books. Since the debt has not been paid in some time, the creditor has no reason to assume that it will ever get paid back, and can therefore not continue to count it as an asset. However, just because they take it off of their account does not mean that they will not still be coming after you for it….
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When you go to file for bankruptcy, you will be asked to list all of the debts you have, including those that you don’t believe will be discharged. If you forgot to list a debt during Chapter 7 bankruptcy, whether or not the court will allow you to retrospectively add it to the discharge list depends on the following: If the creditor knew about the bankruptcy If leaving the debt out caused harm to the creditor If the omission was on purpose or accidental What Happens to Unlisted Debts in Chapter 7 Bankruptcy? Not listing a debt when filing for bankruptcy could potentially have some serious consequences. Leaving out information on bankruptcy petitions could be viewed as fraud, an offense that bankruptcy courts do not take lightly. The unlisted debt may not be discharged if it is not scheduled on your bankruptcy. You may be forced to pay a fine…
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