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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...
What can be done if a debtor falls behind in payments after obtaining a Chapter 7 discharge? Can another bankruptcy case be filed?
The discharge in a Chapter 7 case only covers the debts that were incurred before the case was filed. The bills that a debtor incurs after the case is filed are not discharged. The hope is that, after their old debts are cancelled by the discharge, debtors will be...
Finding the right bankruptcy attorney or lawyer
When choosing the right bankruptcy attorney or lawyer professional to assist you in making the best and correct decisions for your financial situation, many factors apply. One of the most important of those factors is experience. It is very important to have an...