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Chapter 4: I've Decided to
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Yes. The automatic stay granted at the time of filing prevents any creditor from calling.
After the bankruptcy petition is filed, the court mails a notice to all the creditors listed in your bankruptcy schedules. This usually takes a couple of weeks. Creditors will also stop calling if you inform them that you filed the bankruptcy petition, and supply them with the case number. If a creditor continues to use collection tactics once informed of the bankruptcy they may be liable for court sanctions and attorney fees.
I do. That is my job as your attorney. You no longer have to speak to any of them.
Yes. This will stop immediately upon the filing. Wages taken before the filing are not generally recoverable however. So, if your wages are being taken, do not delay in giving me a call.
Yes. No matter where they are in the legal process, they are stopped "right in their tracks". When your discharge is granted the local court dismisses the lawsuit and closes the case forever.
No. this is one of the few protected areas.
Yes. This will have no affect on the other parties. And, should they default at some point in the future, you do not have to worry about the creditor coming back on you.
Yes. The law requires you to file on all debts. The result of your filing will be that the creditor looks to the other parties for payment. They will now be stuck paying your debt. One solution, if you can afford it, is to continue to pay the debt. You are not required to do this, but for personal reasons, you might believe you must do this.
The court takes care of this for you. This is one of the reasons they charge a relatively expensive filing fee.
A secured debt is one where the creditor has a lien on the property you purchased from them or some other property you own. This is a form of collateral. The most common item used for security in a secured loan is an automobile.
An un-secured debt is where the creditor only has your promise that the loan will be re-paid. It does not involve collateral. Some examples of unsecured debts are credit cards, department store cards, medical and utility bills.
If the oversight is discovered early enough, we can amend the petition and add them. Once the discharge is granted, the only way to add them is to re-open the case. This is expensive, time consuming, and there is no guarantee that the court will allow the addition.
Generally no. Two exceptions exist: (1) The student loan may be discharged if it is neither "insured or guaranteed by a governmental unit" nor "made under any program funded in whole or in part by a governmental unit or nonprofit institution." Or, (2) The loan may be discharged if it imposes an undue hardship on the debtor or the debtor's dependents. It is not easy to prove that a hardship case exists and it takes a special hearing to do so.
Yes. You can re-affirm the loan or just pay it. A reaffirmation is where you go to the creditor and sign a document that reinstates the old debt. You are never required to sign such a document. Reaffirmations are common with secured assets and where family members had previously co-signed for the debt.
<- Chapter 2: What About My Property?
Chapter 4: I've Decided to
File, What Do I Do? ->
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