When Can A Debtor File For Bankruptcy?
A debtor cannot get a discharge in a Chapter 7 BK case if the debtor previously got a Chapter seven discharge within the past 8 years, or six years if they had previously filed a Chapter 13 case. The time periods in either case is measured from the filing dates, not the final results of the previous bankruptcy attempt. (See Federal Laws 11 USC 348a, and 11 USC 727a).
Lobbyists for the influential Mortgage Bankers Association, including chief MBA lobbyist Francis Creighton, argue that mortgage rates would increase by 1.5 percentage points if the legislation is enacted. Creighton cited the effect of higher mortgage rates in several cities, such as Baltimore which he says would make homeowners bear an additional payment of $1,533 per year on a mortgage of $128,218 and would lead to more foreclosure listings.
There should not be a lot of back and forth and misunderstandings once the agreement has been made and the paperwork has been filed and agreed to. All of the information should be crystal clear and correct, and you should not regret that you filed once your day in court is over. You should be able to look back on the filing as a necessary step that you took to help your financial situation, and it is best if you feel as though you really did receive help in the end.
For the most part, all of your unsecured debt will be written off. This includes all medical bills, credit card balances, and signature loans. Some debts are not dischargeable in bankruptcy, which means that you will still owe them. Some examples of unsecured debts that are not dischargeable in bankruptcy include student loans, among other things. So filing for bankruptcy with the goal that you will be released from the hardship of having to pay back your student loans will in most cases be counterproductive.
Chapter 7 attorneys operate a bit differently since during a Chapter 7 filing, the debtor will have to sell all legitimate assets to pay outstanding debts. This is commonly called a liquidation proceeding, where a plan of reorganization is not filed, and all liquid, non-exempt assets are sold and the proceeds distributed to the creditors. Any remaining unsecured creditors that are left on the list do not get paid.
Your attorney will want to talk with you extensively about your financial situation in order to determine whether Chapter 7 is really the best option for you. While Chapter 7 will certainly be the best option for some individuals, it's not right for everyone. We want to be sure we've talked through all of your options before we settle on a specific course of action.
In order to be qualified under chapter 7 bankruptcy filing, you have to prove that you have little or no assets with your name. What you can do to qualify for chapter 7 is by relinquishing the ownership of you assets to your family members. You have to do this with a legal bill of sale form so that you can prove that you are no longer own the assets and to avoid your creditors from stake claim on those assets.