When money is available, it's considered an asset case. Any debt you fail to list in an asset case won't be discharged. If, however, yours is a no-asset Chapter 7 bankruptcy (there's no money to repay creditors), the debt still might be discharged.
ninety daysThe look-back period, or period of time that the trustee can go back to unwind these transfers, is ninety days for general creditors and one year for insiders (relatives or someone with a close or influential relationship with you—see more below).
The following debts are not discharged if a creditor objects during the case. Creditors must prove the debt fits one of these categories: Debts from fraud. Certain debts for luxury goods or services bought 90 days before filing.Apr 7, 2021
While the goal of both Chapter 7 and Chapter 13 bankruptcy is to put your debts behind you so that you can move on with your life, not all debts are eligible for discharge.
Please be aware that your trustee does not have access to your personal account. A separate account is opened to manage your bankrupt estate.
The bankruptcy court has exclusive jurisdiction to determine dischargeability of these debts. If a complaint is not timely filed, the debt is discharged. See §523(c).
Nondischargeable debt is a type of debt that cannot be eliminated through a bankruptcy proceeding. Such debts include, but are not limited to, student loans; most federal, state, and local taxes; money borrowed on a credit card to pay those taxes; and child support and alimony.
Non-Dischargeable Debt in BankruptcyDebts that you left off your bankruptcy petition, unless the creditor actually knew of your filing;Many types of taxes;Child support or alimony;Fines or penalties owed to government agencies;Student loans;Personal injury debts arising out of a drunk driving accident;More items...•Oct 18, 2021
When is bankruptcy removed from your credit report? A Chapter 7 bankruptcy can stay on your credit report for up to 10 years from the date the bankruptcy was filed, while a Chapter 13 bankruptcy will fall off your report seven years after the filing date.May 18, 2021
Filing Chapter 7 bankruptcy wipes out most types of debt, including credit card debt, medical bills, and personal loans. Your obligation to pay these types of unsecured debt is eliminated when the bankruptcy court grants you a bankruptcy discharge.Dec 12, 2021
If a creditor or the bankruptcy trustee files under Section 727, the entire discharge can be denied or revoked. The effect is even worse than if the bankruptcy was never filed. Denial or revocation under Section 727 is sometimes referred to as “bankruptcy hell” — for good reason.
Once you file for bankruptcy, an automatic stay goes into effect. An automatic stay specifically states that creditors cannot contact you to collect debts after you've filed for bankruptcy. It protects you from harassing phone calls, emails, and letters.Feb 20, 2020
Creditor Takes You to Court. Finally, the matter is usually referred to an attorney whose job it is to sue you in court for the unpaid bill. Some attorneys have their staff call you first to try and make arrangements for payment, and some attorneys file suit first. Again, save everything.
When the bank gives up, they then refer the matter to an outside collection agency, and the same process starts over again. You will get mail and calls from the outside agency, but the threats escalate, including threats to sue you. Again, save all the mail for your attorney.
If your lawyer is not returning your calls or responsive to you, you picked the wrong attorney. You should continue to try to get hold of him, but I would send him a letter giving him a specific date by which to respond and tell you exactly what he intends to do to remedy the situation.
Improperly filed schedules or statements can cause a dismissal; but if the documents are filed properly and a motion to reinstate is filed soon, then this should be easy to fix.#N#You do not have a lot of time to get this fixed, so if the problem happened within...
Talk to your lawyer to see what s/he is willing to do to resolve the problem. I find it hard to believe that the case was dismissed simply because the formatting on the creditor matrix didn't conform to the local rules.#N#Hope this perspcctive helps!
Most of the time. However, if you’re sued for a debt and fail to show for your court date, you could lose by default. If you defy the court’s order to pay, then you’ve triggered a process that could lead you to jail.
The federal Fair Debt Collections Practices Act, undergirded by certain state laws, protects consumers from abusive and harassing behavior from debt collectors.
Bill “No Pay” Fay has lived a meager financial existence his entire life. He started writing/bragging about it in 2012, helping birth Debt.org into existence as the site’s original “Frugal Man.” Prior to that, he spent more than 30 years covering the high finance world of college and professional sports for major publications, including the Associated Press, New York Times and Sports Illustrated. His interest in sports has waned some, but he is as passionate as ever about not reaching for his wallet. Bill can be reached at bfay@debt.org.
Simply, if you did not list a creditor at all or did list them but not at an address they use to receive mail from the USPS, then maybe they no idea that you filed bankruptcy. That may be the reason they are contacting you – they have no idea you filed.
A “no asset” case means the Chapter 7 Trustee is not going to take any property from you and not make any payment to creditors. You can formally add them to you list of creditors. This approach means they will receive all future formal notices from the Bankruptcy Court. You would want to do this as early as possible.
Sometimes, in a Chapter 13 or an “asset case” Chapter 7, the debtor is not going to receive a discharge of the omitted debt. Bankruptcy is serious business. A debtor needs to pay careful attention and follow all the rules to receive the full extent of the relief available.
If the Chapter 7 Trustee ultimately makes a distribution to creditors (which is known as an “asset case”), but the omitted creditor is not notified of your filing in time to file a claim and share in the funds distributed, then their claim is not discharged! DO NOT DELAY in addressing this issue. In this scenario, a debtor should immediately bring ...
Typically, you cannot reopen your case to formally add a creditor. Frankly, most courts say there is no need to do so. Instead, a debtor should tell the creditor they filed and send them a copy of your Discharge Order. As always, keep records and evidence that you notified them in case they engage in collection efforts sometime in the future. The key is to notify them of the filing and discharge AND be able to prove your did that if they later engage in further collection activities.
If they timely receive Notice and chose not to file a claim, then the debt is discharged upon completion of the case (assuming it’s a dischargeable debt).
Lastly, in a Chapter 13, a secured creditor (creditor secured by a car, house, etc.) won’t get payment from the Chapter 13 Trustee unless the Trustee has a claim filed by the creditor (or debtor). Using the car creditor example, without a claim filed by that creditor, the funds debtor intended for the car creditor might be distributed to a credit card or medical debt creditor. In that scenario, the car creditor is never paid, and the car lien remains; if the debtor wants to own the car, they still need to pay the creditor to remove the balance due on the car.
Not Listing Debt in Chapter 7 Bankruptcy 1 Asset case. Listing all your debts is especially important if it turns out that yours is an asset case, meaning that money is available to disperse to creditors. If you don’t list a creditor in an asset case, that creditor unfairly loses out on its share of funds. So, the rule is that the debt owed to an unlisted creditor in an asset case is nondischargeable. 2 No-asset case. If you accidentally forget to list a creditor in a no-asset case—a case where there’s no money to distribute—the result could go either way. Courts often take a “no harm, no foul” approach because the unlisted creditor wouldn’t have gotten anything anyway, But not always. Some courts find unlisted debts nondischargeable even in no-asset cases. And not listing a debt is never a good idea because convincing the unlisted creditor that the debt is discharged might require you to file a motion and get an order from the court. 3 Fraud exception. If a creditor has a legitimate claim that you committed fraud —that you intentionally misled the creditor about a debt—then all bets are off. It doesn’t matter if it’s an asset case or a no-asset case—if you don’t list the debt, you can be sued even after your bankruptcy is over.
When you file for bankruptcy, all of your creditors stand to take a financial loss. Much like kids on the playground, these creditors expect things to be fair. The law does, too. Iit gets divided according to the bankruptcy payment priority system rules if there's money to be had.
Chapter 13 is a debt reorganization plan that lets you pay smaller monthly payments to your creditors over three to five years. Once you complete your plan, any remaining balance on dischargeable debt goes away.
Chapter 7 wipes out dischargeable debt in a short period. Your income must be low enough to qualify for a discharge. You’ll have to pass the Chapter 7 means test. And you can’t have much in the way of property unless you’re willing to give some of it up.
Most unsecured creditors must sue you in court and get a money judgment before they can forcibly take property . Most credit card balances are unsecured debt, but a few are secured (examples include credit accounts from jewelry, furniture, and electronics stores).
Not to worry, though—many people can keep all of their property in Chapter 7. Chapter 7 cases are either asset cases or no-asset cases. And sometimes, a case involves fraud. Where your case falls will determine what happens to your unlisted debt.
The truth is that you must list all of your creditors—even friends and family members you don’t want to stiff. In this article, you’ll learn: why you must list all debts in bankruptcy. how you’ll list your debts in the bankruptcy petition, and. the things that can go wrong if you leave out a debt.
If you made the attorney aware of the Trustee Sale date, you provided him/her with the necessary information & documentation in time for the attorney to at least prepare an emergency bare bones petition, you signed and executed an attorney/client agreement and paid the fees specified in that contract, completed the credit counseling course (required to do a filing with only limited exceptions) and....
You should talk to a legal malpractice attorney that specializes in bankruptcy. More facts are needed...#N#Did he know about the foreclosure date? If so, how much time did he have to prepare the petition? A day's notice is sufficient time to put together and file an...
Could be, but more facts would be needed. Post in the area of malpractice, not bankruptcy.#N#Hope this perspective helps!
The question is whether he knew about the foreclosure date. If he knew and failed to stop the sale then you may have a malpractice claim. Speak with an attorney.