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Does a bankruptcy case automatically remove liens-such as mortgages-against a debtor's property?
No. Liens can be placed on a debtor's property in many different ways. Some are by agreements, like mortgages and auto liens. Others are by operation of law, like property tax liens on a debtor's home. And some liens are to enforce judgments that have been entered...
What should debtors do if they forget to list a creditor in their bankruptcy schedules?
As soon as a debtor realizes that a creditor has been omitted, the debtor should notify his or her attorney with all of the information necessary to complete the schedules (the amount of the debt, the type and value of any collateral, and the name and address of the...
What are the main purposes of bankruptcy for individuals who can not pay their debts?
For individuals who can not pay their debts- called "debtors"-bankruptcy has two main purposes: First, bankruptcy operates to give the people who are owed money-the creditors-a fair share of the money that the debtors can afford to pay back. Second,bankruptcy operates...
What is a reaffirmation agreement, and how does it work?
A reaffirmation agreement is an agreement by a debtor and creditor in Chapter 7 bankruptcy about how to treat a particular debt that would otherwise be discharged in the debtors bankruptcy. Usually, the debt is secured by collateral that the creditor could repossess...
If a debtor is behind in house or car payments, can Chapter 13 stop a foreclosure or repossession from taking place?
Yes. Unlike Chapter 7, where the debtor can usually stop a foreclosure or repossession only if the creditor agrees to a reaffirmation, a debtor in Chapter 13 can provide for car and mortgage payments in the Chapter 13 plan, and the creditor can be required to accept...
How do I know when my bankruptcy case is completed, and I am no longer in bankruptcy?
At the conclusion of an individual's bankruptcy case, the Court enters an order closing the case, and a copy of this order is sent to the debtor. Unless the trustee has assets to distribute to creditors, case closing takes place fairly quickly in Chapter 7 cases. In...