We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
WILL BANKRUPTCY WIPE OUT ALL OF MY DEBTS?
As a general rule, most debts are wiped out or discharged in bankruptcy. However, the United States Bankruptcy Code provides that some debts may not be discharged in bankruptcy. Whether a debt is discharged or not depends on the nature of the debt and the type of bankruptcy proceeding (i.e., Chapter 7 or Chapter 13). Generally speaking, some types of debts that normally will not be discharged in bankruptcy include, but are not limited to, the following:
| 1) | Money owed for child support or alimony, criminal fines, and some taxes; |
| 2) | Debts that are not listed in your bankruptcy petition; |
| 3) | Loans that you obtained by knowingly giving false information to a creditor who reasonably relied on such information in making you the loan; |
| 4) | Debts resulting from “willful and malicious” harm; |
| 5) | Student loans owed to a school or a governmental body (in most cases); and |
| 6) | Mortgages and other liens that are not paid in full in the bankruptcy case (but bankruptcy will often wipe out or discharge your personal obligation or liability to pay any additional money if the property is sold by the creditor). |
WILL I HAVE TO GO TO COURT?
|
In most bankruptcy cases, you only have to go to a proceeding that is referred to as the “first meeting of creditors” to meet with the bankruptcy trustee and any creditor who chooses to appear at that meeting. Most of the time, this meeting will be a short and simple procedure where you are asked a few questions about the information that is contained in your bankruptcy petition and about your financial situation. This is a fairly informal meeting, and there is no judge present. However, you should dress as if you were going to a court proceeding. Occasionally, if you fail to make your Chapter 13 plan payments in a timely fashion or if you dispute a debt, then you may have to appear before a bankruptcy judge at a formal hearing. If you need to go to court, you will receive notice of the court hearing date and time from the Court and/or your attorney. For this reason, you should always keep your attorney advised or your current address. |
WILL BANKRUPTCY AFFECT MY CREDIT?
|
There is no clear answer to this question. Unfortunately, if you are behind on your payments to your creditors, your credit may already be adversely affected. Bankruptcy will probably not make things any worse. The fact that you have filed a bankruptcy can appear on your credit record for up to ten years. Whether or not you will be able to obtain credit in the future is unpredictable, and it probably depends more on what good things you are able to do in terms of keeping a job, saving money, making timely payments on secured debts, etc., than the fact that you filed bankruptcy. In some cases it may actually be easier to obtain future credit after filing bankruptcy because new creditors may feel that you are likely to be in a better position to pay your new debt. Creditors will also realize that you cannot discharge your debts in a subsequent bankruptcy case that is filed within four years of the filing of a previous Chapter 13 case or within eight years of the filing of a previous Chapter 7 case. However, while your bankruptcy proceeding is still pending (i.e., until the Discharge Order and Final Decree is entered by the Court), you are prohibited from obtaining new credit without first obtaining permission from the Bankruptcy Court,). |
WHAT ELSE SHOULD I KNOW?
 Utility
Services. Public utilities, such as the electric company, cannot refuse service or terminate service because you have filed for bankruptcy. However, if you are behind in your payments to a utility company when you file your bankruptcy petition, then the utility can require you to pay a reasonable deposit for future service and you do have to pay bills for utility services that are provide after the bankruptcy petition is filed with the Court.Discrimination. An employer or government agency cannot discriminate against you because you have filed for bankruptcy. Driver's License. If you lost your driver’s license solely because you could not afford to pay court-ordered damages caused by an accident, then bankruptcy will allow you to get your license back. Co-signers. If someone has co-signed a loan with you and you file for bankruptcy, then the co-signer may have to pay whatever portion of the debt that you do not pay. Calls and Letters from Creditors. After you file for bankruptcy, all of your creditors should stop calling or writing you demanding payment of your debts. If one of your creditors contacts you, you should inform that creditor that you have filed for bankruptcy and give that creditor your case number and the name and address of your attorney. If the creditor asks you to pay your bill after you have given the creditor this information, make a note of the time and content of the conversation and provide this information to your attorney. All letters or other correspondence that you receive from your creditors more than one month after you have filed for bankruptcy should be given to your attorney. Accurate Information. All information that you provide to your bankruptcy attorney, the bankruptcy trustee, and the Bankruptcy Court must be “the truth, the whole truth, and nothing but the truth.” Providing false information, or the intentional failure to provide complete information, in connection with your bankruptcy case can constitute a federal crime that results in a fine and/or a prison sentence. Much of the information that you provide in your bankruptcy petition and through your testimony, if any, to the trustee and the court can, and will, be verified. |
J.
Baron Groshon, P.A.
417 East Boulevard, Suite 203, Charlotte, NC 28203
704-342-3328
Telecopier 704-342-3358
barongroshon@bellsouth.net
[ Bankruptcy
] [ Types of Bankruptcy ] [ Bankruptcy
& Property ] [ Disclosures ]
[ Bankruptcy & Debt ] [ Bankruptcy
Attorney Info & Directions ]
[ Documents and Information Needed ]
[ Credit Counseling Briefing
]
