Overview Information About Debts in Chapter 7 Bankruptcy
Overview Information About Debts in Chapter 7 Bankruptcy
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Debt Discharge in Bankruptcy: Nondischargeable Debts
You can wipe out or “discharge” most debt types in Chapters 7 and 13, including credit card balances, medical and utility bills, home and car loan payments (if you return the house or vehicle to the lender), and personal loans. But bankruptcy doesn’t discharge all obligations. Nondischargeable debts include most student loans and taxes; fines, penalties, and criminal restitution; and domestic support obligations. Debts incurred through fraud; obligations the filer didn’t list correctly; some loans owed to stock, bonus, profit-sharing, and retirement plans; and debts related to operating a vehicle under the influence of drugs or alcohol also are nondischargeable in bankruptcy.
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Priority Claims in Chapter 7 Bankruptcy
When you file for Chapter 7 bankruptcy, not all creditors are treated equally. Bankruptcy law sets out the order in which creditors are paid and gives certain claims priority over others. These are referred to as priority claims.
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What Happens to My Cosigner in Chapter 7 Bankruptcy?
Chapter 7 bankruptcy discharges most unsecured debts, like credit cards, and allows you to keep secured debts like car loans and home mortgages if you agree to repay the loans. Despite your bankruptcy filing, if you have a cosigner on your debts, your cosigner will still be responsible for the debt.
Which Debts Are Wiped Out in Chapter 7 Bankruptcy?
Which Debts Are Wiped Out in Chapter 7 Bankruptcy?
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Are Unsecured, Nonpriority Debts (Schedule F Claims) Discharged in Chapter 7 Bankruptcy?
Find out how unsecured nonpriority debts are treated in Chapter 7 bankruptcy.
Secured vs Unsecured Debt in Chapter 7 Bankruptcy
Secured vs Unsecured Debt in Chapter 7 Bankruptcy
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Reaffirmation Agreements in Chapter 7 Bankruptcy
Except for certain types of debt that survive bankruptcy such as back taxes and child support obligations, most of your debts will be discharged (wiped out) at the end of your Chapter 7 bankruptcy case. If you owe secured debts (debts for which you have pledged property as collateral), your personal liability for those debts will be discharged in bankruptcy too.
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What to Expect at a Chapter 7 Reaffirmation Hearing
When you reaffirm a debt in Chapter 7 bankruptcy, you enter into a contract with your lender (called a reaffirmation agreement) that makes you personally liable for the obligation despite your bankruptcy discharge. Many debtors reaffirm secured debts in order to keep the asset pledged as collateral for
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Secured vs Unsecured Debt in Chapter 7 Bankruptcy
What happens to your debts in Chapter 7 bankruptcy depends on whether they are secured or unsecured.
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Unsecured Debt: Priority vs. Non-Priority
Whether you file for Chapter 7 or Chapter 13 bankruptcy, it's important to determine which of your unsecured debts will be classified as priority debts and which will be assigned to the nonpriority category.
Common Debts in Chapter 7 Bankruptcy
Common Debts in Chapter 7 Bankruptcy
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The Truth About "Pay Day" Loans and Filing for Bankruptcy
Payday loans, cash advances, check advances, or paycheck advances are short-term loans offered at a high interest rate. They help the borrowers meet their financial burdens until the next payday. Learn when it's possible to eliminate payday loans in bankruptcy and when you might remain responsible for paying them.
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Wiping Out Government Fines and Tickets in Bankruptcy
Whether you can eliminate (discharge) a government fine, penalty, or ticket in bankruptcy depends on the government's intent on issuing the fine. If the government entity imposed the fine as punishment, then you cannot wipe it out in bankruptcy. However, if the government intends the fine to compensate
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What Happens to Your Timeshare and Timeshare Debt in Bankruptcy?
If you own a timeshare and are considering filing for bankruptcy, you likely want to know what will happen to your timeshare. Can you keep it? Will the trustee take it? What happens to a timeshare mortgage and other related timeshare debts in bankruptcy? Learn why the answers depend on the type of timeshare you own, the value of your timeshare, and whether you choose to file for Chapter 7 or Chapter 13 bankruptcy.
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Will Bankruptcy Stop the IRS From Collecting Tax Debts?
The automatic stay will stop the IRS from collecting taxes debt that you owe once you file a Chapter 7 or Chapter 13 bankruptcy. But depending upon the nature of the tax debt you owe, the IRS may be permitted to collect from you later.
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Will Chapter 7 Bankruptcy Stop an Eviction?
Bankruptcy's automatic stay will prevent your landlord from beginning or continuing with eviction proceedings during your Chapter 7 bankruptcy.
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What Happens to Liens in Chapter 7 Bankruptcy?
What happens to liens on your property if you file for Chapter 7 bankruptcy? If a creditor has a lien, the creditor has rights against your property which secure your obligation to pay money you owe. Generally, if you don’t pay a lien creditor, it can take steps to take your property to satisfy the debt.
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What Happens to a Car Lease in Chapter 7 Bankruptcy?
What happens to your car lease in Chapter 7 bankruptcy depends on whether you are behind on your payments and on what the bankruptcy trustee decides to do with the lease.
Common Questions About Debt in Chapter 13 bankruptcy
Common Questions About Debt in Chapter 13 bankruptcy
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Will My Debt Get Discharged If I Forget To List it in My Chapter 7 Bankruptcy?
I forgot to list a debt on my Chapter 7 bankruptcy petition and schedules and I'm worried about what will happen. Will my Chapter 7 discharge wipe out the unlisted debt or will I still owe it? The answer will depend on whether the Chapter 7 bankruptcy trustee distributes money to your creditors and the court's discharge rules where you file your Chapter 7 bankruptcy case.
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What Debts Should I Continue to Pay During My Chapter 7 Bankruptcy Case?
A Chapter 7 bankruptcy only discharges eligible debts that you owed at the time that you filed your bankruptcy petition or "prepetition debts." Anything that you owe after you file, or "postpetition debts," aren't included in your bankruptcy and remain your responsibility to pay. You'll also want to continue paying your mortgage, house payment, and any other debt secured by property if you don't want to lose it.
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What to Expect at a Chapter 7 Reaffirmation Hearing
When you reaffirm a debt in Chapter 7 bankruptcy, you enter into a contract with your lender (called a reaffirmation agreement) that makes you personally liable for the obligation despite your bankruptcy discharge. Many debtors reaffirm secured debts in order to keep the asset pledged as collateral for
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What Happens to My Cosigner in Chapter 7 Bankruptcy?
Chapter 7 bankruptcy discharges most unsecured debts, like credit cards, and allows you to keep secured debts like car loans and home mortgages if you agree to repay the loans. Despite your bankruptcy filing, if you have a cosigner on your debts, your cosigner will still be responsible for the debt.
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Priority Claims in Chapter 7 Bankruptcy
When you file for Chapter 7 bankruptcy, not all creditors are treated equally. Bankruptcy law sets out the order in which creditors are paid and gives certain claims priority over others. These are referred to as priority claims.