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Bankruptcy discharge

Bankruptcy discharge is a legal document that permanently eliminates your entire debt obligation. After obtaining Bankruptcy discharge you become no longer liable to your creditor. While Chapter 7 Bankruptcy gives you immediate discharge by liquidating your asset, Chapter 13 Bankruptcy helps you to discharge your debt by restructuring the original loan term. It has to be remembered that we cannot discharge all of our debts like alimony, child support or debt arising out of fraud act and criminal act or debt pending on court imposed fines. However, unlike debt settlement services, bankruptcy can legally protect you from any type of creditor harassment in future.

bankcruptcy

Bankruptcy discharge procedure may work in different ways, depending on whether you are a first time, second time or a third time bankrupt.

If you are first time filing bankruptcy and have no additional income, you can obtain automatic discharge within nine months of completing your duties. But, if you have some surplus income, you will get bankruptcy discharge after 12 months.

For a second time bankrupt person with no surplus income, bankruptcy discharge can be obtainable after 24 moths. And for one who has surplus income, bankruptcy discharge can be achieved after 36 months.

Third time bankruptcy filer will not be able to discharge his debt in the direct manner. He has to appeal to the trustee and then the trustee will file bankruptcy petition to the bankruptcy court. Depending on various criteria, the judge will decide whether you will be granted bankruptcy discharge or not.

However, a bankruptcy discharge can be opposed on various grounds such as criminal investigation, breach of contract or negligence of duties as specified in Bankruptcy and Insolvency Act.

After filing bankruptcy your creditor cannot legally contact you and force you to pay back your unpaid debt. Even, once you file it, an immediate stay order is put in place, enforcing your creditors to halt in your collection effort.

A creditor may hold a trustee deed on the principal property of the debtor. But he cannot move on with foreclosure proceedings if the debtor files Chapter 13 Bankruptcy. If the debtor files Chapter 7 Bankruptcy, then the creditor can contact with the debtor’s attorney to understand how the collateral will be used to pay off his credit.

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by: Robert ThatcherBefore rushing to a lawyer to assist you in filing for bankruptcy, you have to make sure what is bankruptcy and what is not. Only then will you have to find a bankruptcy lawyer that you can work with in filing your case. Many people rush to file for bankruptcy thinking that it will solve their financial problems. The opposite is often true.

Declaring your business to be legally bankrupt, only mean that you have done everything you could and there is no way for recovery. It means being deep in debt that it will already be impossible for you to sustain the business.

There are kinds and variations to bankruptcy and the legal process will depend very much on where you are coming from but the purpose is the same. Bankruptcy cases will take years to resolve. The court will determine what debts do not have to be repaid and what will be directly deducted from your income.

In the interim, credit lines will be closed to you. Your credit history will be tainted and no credit institution will want to do business with you. Back taxes that you owe will still have to be paid and obligations will still be enforced like alimony and child support.

When there is no resolution that is possible, finding a good bankruptcy lawyer will then be the only recourse.

A good bankruptcy lawyer should be someone you can be comfortable talking with. Someone you can trust and someone who has displayed competence in handling bankruptcy. This is very important as communication between you and the lawyer must be based on trust. There have been so many instances when the client holds back on information that he thinks is not so significant only to learn later on that the piece of information that was withheld posed additional complication to the case. Withholding information from your bankruptcy lawyer pose problems where non existed before. Bankruptcy lawyers can only help the client to the extent of the knowledge that the lawyer has. It is crucial then that the client works with the lawyer. This is in the first place the client’s future that is at stake.

Do not hesitate to interview the lawyer prior to retaining him. Ask the lawyer questions and a good lawyer must answer you in a language that you can understand. If you don’t, do not be afraid to clarify statements that could be ambiguous to you. Find out a bankruptcy lawyer that already has an extensive experience in handling bankruptcy cases. Whenever possible find a bankruptcy lawyer who is a specialist. Avoid the generalist, as they may not be able to help you as much.

If you feel uncomfortable talking with a particular bankruptcy lawyer, find another one. You can visit the local bar association to find out their recommendation.

When you visit your bankruptcy lawyer, bring a list of all the creditors that you owe, including payments to personal loans that you are not left behind and a list of all your assets and liabilities. The more information you provide the bankruptcy lawyer, the better and more accurate the recommendations he will give you. Remember that lawyers can only work as good as the information that you provide.

Cooperate well in giving your lawyer the data regarding your case because you are in the best position to give those to him. You also will be the person that will either suffer or benefit from the outcome.