What Happened After Bankruptcy Chapter 7 Discharge – Chapter 7 bankruptcy is also known as liquidation. Chapter 7 bankruptcy allows you to have all dischargeable debts, such as credit card debt and medical bills, discharged within a few months. Chapter 7 bankruptcy is the most common chapter because it allows debts to be discharged without making payments.
Unsecured debts are discharged in Chapter 7 bankruptcy, but secured creditors retain a lien. This means that even if you have collateral debts, such as a mortgage, you will need to pay them back in order to keep the property. However, if you don’t want to keep the property, you don’t have to pay. The same goes for car loans.
What Happened After Bankruptcy Chapter 7 Discharge
To qualify for Chapter 7 bankruptcy, your income must fall below a certain level. This amount varies depending on how many people live in your home and what county you live in. It can also vary depending on the specific payments you have to make, such as your mortgage payment, car payment, or tax payments. If your income is below this level, you may be a candidate for Chapter 7.
Hud Bankruptcy Guidelines After Chapter 7 And Chapter 13
The concept of Chapter 7 bankruptcy is simple. If you meet the income requirements, the debt will be discharged (or discharged) as long as the Chapter 7 trustee can sell “non-exempt property” to pay a portion of the debt. In reality, very few people who file for Chapter 7 bankruptcy have property that is not exempt. For most people, filing for Chapter 7 bankruptcy is just a three to four month process, after which unsecured debts are discharged. That’s what people think of when they hear the word “bankruptcy.” You file Chapter 7 and a few months later you are debt free.
In a Chapter 7 bankruptcy, a Chapter 7 Trustee is appointed to review the bankruptcy petition and schedule. The 341st meeting of creditors will be held approximately 4 to 6 weeks after filing Chapter 7 bankruptcy. We discuss this meeting in more detail in our article, “What Happens at a Chapter 7 341 Creditors Meeting?” Although it is called a “creditors’ meeting,” creditors rarely appear at the meeting. Usually, it’s just you, your Chapter 7 bankruptcy attorney, and your Chapter 7 trustee.
The trustee will use this meeting to determine whether you have “non-exempt assets.” Chapter 7 bankruptcy only allows you to keep “exempt assets.” Each state has its own laws governing what property is considered “exempt” property. Some states, such as Pennsylvania, New Jersey, and New York, allow you to choose between a state-specific exemption and a “federal bankruptcy exemption.” Other states, such as Maryland, require the use of state-specific exemptions.
Most Chapter 7 bankruptcies are “no assets” cases. This means that the trustee did not find any non-exempt assets. That’s because people typically don’t file for Chapter 7 bankruptcy if they have assets they don’t want to lose. Before you file for Chapter 7 bankruptcy, your bankruptcy attorney will notify you in advance so that you can determine whether you have any assets that are eligible for Chapter 7 bankruptcy protection. If you are concerned that you may have assets, you can: File for Chapter 13 bankruptcy instead.
How To Remove A Bankruptcy From Your Credit Report
In most cases, you can keep your home in a Chapter 7 bankruptcy, but you should consult a Chapter 7 bankruptcy attorney to determine if that applies to your case. Most states have fairly large exemptions for your principal residence. If you have a mortgage or other lien against your home, those will also reduce the equity in your home. In other words, if you own a $150,000 home and your mortgage balance is $140,000, you only have $10,000 in equity. Most states would allow much more equity than this. As always, consult a Chapter 7 bankruptcy attorney to determine if it applies to your case.
In most cases, you can keep your car in a Chapter 7 bankruptcy, but you should consult a Chapter 7 bankruptcy attorney to determine if that applies to your case. Cars depreciate quickly, so most cars with an outstanding auto loan are actually upside down. This means you have little or no equity in your car, which can usually be forgiven. As always, consult a Chapter 7 bankruptcy attorney to determine if it applies to your case.
There are also some spells available regarding vehicles in Chapter 7. If your car is worth less than your loan, you may be able to “redeem” your car. This means you can keep your car if you pay for the car’s value rather than the loan balance. This is very valuable as cars depreciate quickly. In most cases, there are companies that offer “redemption loans” that act as refinance loans, which can save you a lot of money. It also helps rebuild trust.
If you don’t want to keep your current car, you can also take advantage of a replacement loan. This allows you to get rid of your car and get a loan for a new one (or at least a new one). Yes, you can receive a loan even if you file for bankruptcy. We have an affiliate company that specializes in these loans.
Life After Chapter 7 Bankruptcy: What To Expect
In most cases, you can keep your retirement accounts in a Chapter 7 bankruptcy, but you should consult a Chapter 7 bankruptcy attorney to determine if that applies to your case. The federal exemption provides that qualified retirement accounts are fully exempt.
After the creditors’ meeting, the trustee will submit a “Report of No Distribution” or “Notice of Change in Asset Case.” If a trustee files a “non-distribution report,” it means that there is no non-exempt property for the trustee to liquidate. If the Trustee files a “Notice of Change in Property Case,” the Trustee intends to liquidate some of your non-exempt property.
You must also take his second credit counseling course called the “Debtor Education Course” or “Financial Management Course.” You must submit proof of completion to receive your discharge. We discuss this in more detail in our article, “What Happens After I File for Chapter 7 Bankruptcy?”
If a 341 conference is scheduled, the bankruptcy officer will also schedule a deadline for objections. This is the deadline for a creditor or other party to file a discharge objection. This is set 60 days after his first scheduled 341 meeting. If no one objects, you will be discharged immediately.
Chapter 7 My Car Loans Showed Up Closed On Credit Karma. I Am Current On Both Loans And Decided To Keep Both When Filling Bankruptcy. Any One Ever Have This Happen And
Not much. At least not in the sense that people think. What is being denied is not your “bankruptcy.” However, in some circumstances, immunity under Chapter 7 may be denied.
First, if your income is too high, the bankruptcy court may deny your Chapter 7 discharge. This means you will need to enter Chapter 13 to have your debts discharged. However, this is not necessarily a bad thing. Many of my clients actually pay less in a Chapter 13 than they do in a Chapter 7. How?Chapter 13 is more powerful. Chapter 13 allows you to do things that you can’t do in Chapter 7. For example, a Chapter 13 could “strip” her second mortgage so she doesn’t have to pay it.
Third, certain types of debt may be considered “non-forgivable.” This means that these particular debts cannot be forgiven and must be repaid. Typical non-dischargeable debts include student loans and certain taxes. (Yes, some taxes are forgivable!) To learn more about Chapter 7 forgivable and non-forgivable debts, check out this article.
The Chapter 7 process typically takes approximately three to four months from start to finish. Once you file for bankruptcy, the 341 creditor meeting takes approximately 4 to 6 weeks. The deadline for discharging objections is set in 60 days. You must receive your dismissal as soon as the appeal deadline has passed. This means that in most cases it will take 3-4 months.
Chapter 7 Bankruptcy: The Road To Discharge And Financial Freedom
If the Chapter 7 trustee marks your case as an estate case, or if someone objects to your discharge, the case may take longer. Unresolved issues will delay the closure of your bankruptcy case.
Generally, you can move from Chapter 7 bankruptcy to Chapter 13 bankruptcy. However, the Chapter 7 to Chapter 13 transition process requires filing a petition in bankruptcy court and giving all creditors and interested parties an opportunity to object. Generally, you can convert from Chapter 7 to Chapter 13, but you may be denied the opportunity to convert if you are found to have committed “malicious acts.”
You can always ask a question or see if there is a problem for free. Our intake team will review your information and help schedule a consultation with an attorney if necessary. If your debts become unmanageable and you can no longer pay them, you may consider filing for bankruptcy to get a fresh start financially. However, bankruptcy has serious consequences that you should know before making a decision.
For example, a bankruptcy stays on your credit report for seven or 10 years, depending on your situation.
What Is A Bankruptcy Discharge?
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