In Chapter 7 bankruptcy, a person in debt can be discharged of his or her owed money. Once a debt has been discharged, an individual will be absolved from her / his legal responsibility to pay for it. A discharge is going to erase financial obligations of a person but there are also some types of financial obligations which are exempted from being discharged. Automatic stay is somehow associated with discharge for the reason that properties and assets of an individual are going to be placed on hold until the discharge has become legally effective.
Chapter 7, which is also called liquidation, uses the properties or assets of an individual who applied bankruptcy to pay for his / her owed money. It basically suggests that an individual is starting over money wise, immediately on the date of filing. Nearly all of an individual's secured debts during the time of the filing are placed on hold by an automatic stay until the discharge. The assets which aren't exempted from liquidation will be sold to be able to repay the outstanding debts. If ever the cash has been used up and there are still unpaid debts, they will be forgiven through a bankruptcy court's discharge.
While assets are sold to pay off financial obligations under Chapter 7, an individual who has filed a Chapter 13 bankruptcy can keep her / his assets. A debtor holds an opportunity to save his or her property from being foreclosed in Chapter 13. A debtor is going to pay the money owed through a repayment schedule which is going to be accepted by the bankruptcy court. The time period of a repayment program is three to five years. The unpaid sum of debts after the repayment schedule has been carried out is going to be erased. One needs to be certain, however, that he / she has paid the required monthly installments
The automatic stay differs from the debt discharge but it facilitates the discharge by preventing the properties and assets of a person from being repossessed by creditors beginning on the day of bankruptcy petition. The lenders are halted from taking any measures which are against a person in debt who is under a bankruptcy. The automatic stay will require the creditors to ask for the approval of the court before they try to seek out debt repayments. But normally the court does not grant such exclusions. If a discharge has not yet started, the automatic stay remains in effect.
There are financial debts that can be wiped out and there are also non-dischargeable ones. The most common financial debts which are excused from discharge are student loan and family support kinds of financial obligations. An education loan is going to carry on after a bankruptcy unless repaying it places a serious burden to a person in debt or to an individual's household. The bankruptcy law will not likewise eliminate family obligations even during serious financial troubles mainly because such financial support could be needed by the dependents.
An individual whose financial debt are discharged is no longer legally required to repay them and the court can charge a collector for contempt if she or he still tries to acquire for repayments.
References: - Laredo Bankruptcy Attorney - Bankruptcy Attorney San Antonio
Chapter 7, which is also called liquidation, uses the properties or assets of an individual who applied bankruptcy to pay for his / her owed money. It basically suggests that an individual is starting over money wise, immediately on the date of filing. Nearly all of an individual's secured debts during the time of the filing are placed on hold by an automatic stay until the discharge. The assets which aren't exempted from liquidation will be sold to be able to repay the outstanding debts. If ever the cash has been used up and there are still unpaid debts, they will be forgiven through a bankruptcy court's discharge.
While assets are sold to pay off financial obligations under Chapter 7, an individual who has filed a Chapter 13 bankruptcy can keep her / his assets. A debtor holds an opportunity to save his or her property from being foreclosed in Chapter 13. A debtor is going to pay the money owed through a repayment schedule which is going to be accepted by the bankruptcy court. The time period of a repayment program is three to five years. The unpaid sum of debts after the repayment schedule has been carried out is going to be erased. One needs to be certain, however, that he / she has paid the required monthly installments
The automatic stay differs from the debt discharge but it facilitates the discharge by preventing the properties and assets of a person from being repossessed by creditors beginning on the day of bankruptcy petition. The lenders are halted from taking any measures which are against a person in debt who is under a bankruptcy. The automatic stay will require the creditors to ask for the approval of the court before they try to seek out debt repayments. But normally the court does not grant such exclusions. If a discharge has not yet started, the automatic stay remains in effect.
There are financial debts that can be wiped out and there are also non-dischargeable ones. The most common financial debts which are excused from discharge are student loan and family support kinds of financial obligations. An education loan is going to carry on after a bankruptcy unless repaying it places a serious burden to a person in debt or to an individual's household. The bankruptcy law will not likewise eliminate family obligations even during serious financial troubles mainly because such financial support could be needed by the dependents.
An individual whose financial debt are discharged is no longer legally required to repay them and the court can charge a collector for contempt if she or he still tries to acquire for repayments.
References: - Laredo Bankruptcy Attorney - Bankruptcy Attorney San Antonio
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