Both your discharge and the closure of your case could be delayed by six months to a year. Situations That Might Make a Chapter 7 Case Longer. Here are some typical situations that could cause your Chapter 7 bankruptcy to linger on: The trustee needs more karacto.xyz: Cara O'neill, Attorney. A chapter 7 discharge is a permanent injunction against any creditors trying to collect the debt from the person. It does not mean they do not owe the debt anymore, it just means that none of their creditors can try to force them to pay their debt. Apr 16, · Read on to learn more about: Discharge; Short term steps and long term steps; Short term; Long term; Conclusion; Congratulations! You made it to discharge in your chapter 7 case! This means that your case is essentially over and you can move forward with your fresh karacto.xyz this article we will talk about what that process looks like practically and how to maximize the benefits of your fresh.
Third, you should set up a budget based on your current income and regular ongoing expenses. There may have been some helpful tips or exercises about how to do this in your credit counseling sessions. If not, you could also use Schedules I and J income and budget from your filed case to use as a starting point. Make certain that you also set up an emergency fund that you contribute to on a regular basis. This can help you avoid financial difficulty in the future if you have an unexpected expense that can be covered instead of taking on debt.
In the long term, you should make certain that you have a plan to pay any debt you were not relieved of in filing for bankruptcy, such as child support or alimony both arrearages and ongoing , student loans , and government debts such as taxes. With all of your unsecured debt now discharged and behind you, it might be possible to catch up on non-dischargeable debts faster, which can help your financial situation going forward.
You should also take steps to start rebuilding your credit. It may sound counterintuitive to do so - you just got out of debt! Why would you start taking on more? You can address this strategically and start with a small secured credit card.
This helps to show that you have control over your finances and you are able to maintain your payments. It is best to only charge a small amount and pay it off in full every month. That way you are establishing positive credit history and avoiding paying interest on your purchases. You might decide to designate the card for a single purpose, for example gas for your car or groceries, that you know from your budget to be an amount you can pay in full each month.
Keep in mind also that there are things you are already doing that will help to rebuild your credit. Did you stay in the same rental property during and after your bankruptcy case?
If so, great! Your regular rent payments will help to show a positive payment history. Did you keep making payments on your car loan with or without a reaffirmation agreement? Again, great. This is also showing good financial strategy.
Making it through your chapter 7 bankruptcy to discharge is absolutely an accomplishment. Congratulations on getting your finances in order! With the fresh start you can set up good habits for going forward to avoid financial difficulty in the future and to prove yourself to be creditworthy for when you do decide to make a major purchase in the future.
But most importantly - live your life! Eva Bacevice, Esq. Eva G. Bacevice graduated from the University of Michigan Law School in She practiced law for close to a decade in the area of consumer bankruptcy. They can report the debt on the account because as a legal matter, the person still owes the money but they are just not allowed to try to collect it from the person. The number one prohibition is that a person cannot get a Chapter 7 discharge more than once every eight years.
There have been a lot of people coming back to file again for the second time because they have been crushed by the recession in the economy. The second thing is that the person has to be qualified in terms of income, because income limitations may apply to the person.
These limitations are fairly complex but someone who was making more than a certain amount of money might not be able to file for a chapter 7. The other issue would be if the person owned a house but was behind on the payments.
They might not want to file a chapter 7 because they were trying to catch up on payments and save their home. So in that case, the chapter 13 would make more sense. However it would be time to do a chapter 7 if someone had a lot of debt, their creditors were harassing them and their credit score was ruined. Generally, the person will find out at the meeting of creditors. At the meeting of creditors, the trustee will ask the person questions under oath about all of their paperwork and assets. There is still the day waiting period after that.
Creditors can still file objections to the discharge for a particular debt for up to 60 days after the meeting of creditors, although that is pretty rare. It probably the one in a , cases where any kind of adversary objection to discharge is filed. There are really four main categories of debts that cannot be gotten rid of in a bankruptcy. The main debt that is not dischargeable is student loans. A lot of people have borrowed money for student loans to go to college but unfortunately that cannot be wiped out in a chapter 7.
The second most common one is child support or alimony which cannot be wiped out either. In some cases, however, it is possible to get rid of the taxes if they were more than three years old and the person had filed all their returns on time; taxes in the bankruptcy that are less than three years old cannot be wiped off. The fourth common is fines owed to the government like parking tickets, red light camera tickets, and MVA fines. The first thing a person should do is keep records of all the times the creditor has contacted them.
If the person has caller ID, they can even take a picture of the caller ID with their phone and keep a record of that. If they send a letter, then they need to keep copies of all of that, and immediately notify the bankruptcy attorney that they have been contacted so the creditors can be notified. But if that does not get them to stop, then eventually they can be sued for violating the automatic stay Because once a bankruptcy is filed, they are not supposed to contact the person anymore, so if they keep contacting the person, it would be a violation of the stay.
Sometimes they can be sued and the client can actually get money back from them.