The function of a discharge is usually to “release a reputable debtor from his financial burdens and facilitate the debtor’s unencumbered `fresh start'”. In re Pelkowski, 990 F.2d 737, 744 (3d Cir.1993) (citing Kokoszka v. Belford, 417 U.S. 642, 645-46, 94 S.Ct. 2431, 2433-34, 41 L.Ed.2d 374 (1974)). The general aim of a bankruptcy case is usually to fully disclose whatever you own or are interested in and surrender assets towards the trustee that exceed just how much that can be protected in the laws of exemptions. Otherwise, for anyone who is not able to surrender assets, you may also make a payment schedule under Chapter 13 in the bankruptcy code.
Bankruptcy is probably not an option for those who have assets to get rid of and you are not able to surrender those assets. You see, a Chapter 7 bankruptcy case is regarded as a liquidation bankruptcy the place you cannot afford for making any payments toward your financial obligations. If you have no assets, then you’ve got nothing to forfeit and everything to get from personal bankruptcy. But when you’ve got too much equity at your residence that you don’t wish to leave, you will need another bankruptcy alternatives.
A key to success would be to consult with at the very least two or three bankruptcy lawyers because I hear from clients that nobody is all the same. One would imagine that, however it’s simply not true. Not all bankruptcy lawyers are seasoned so you could end up losing assets should your lawyer will not be well versed inside laws of exemptions approaches to protect your assets or warn you in case you are at likelihood of losing assets. If you find yourself inside a Chapter 7 case and vulnerable to losing assets, you are actually experiencing the right to convert your case into a Chapter 13 and produce a payment plan, if the budget allows. Unfortunately, once you have attended that Section 341(a) hearing known as a “Meeting of Creditors,” most trustees won’t allow a dismissal, that makes it hard to escape the trustee’s taking powers.
Another reason bankruptcy will not be right for you is the place you make too much money and you also would be repaying 100% of the money you owe. That’s when bankruptcy is optional and also you should wiegh the pros and cons of most your options prior to buying a payment schedule under Chapter 13 with the Bankruptcy Code or even a debt settlement plan. In Chapter 13, your finances are repaid with virtually no interest, making it more affordable when compared to a traditional repayment plan with a lot of unsecured credit card debt. Another benefit of any Chapter 13 case is not that all creditors file states get paid. This means that just how much you owe today, may drop after your bankruptcy. A third benefit into a Chapter 13 bankruptcy is the fact that there are not tax consequences for debts discharged in Chapter 13. Not one of the benefits can be purchased outside of bankruptcy.
Finally, a new start in bankruptcy is good for the “Honest, but unfortunate Debtor.” This means you cannot hide or offer all your belongings and expect ends up with bankruptcy. If you’re facing a fraud lawsuit, or we have seen a judgment against you for fraud, you might not be eligible for bankruptcy. The only way to find out would be to take a complimentary consultation with a personal bankruptcy lawyer which has experience in a nearby courts. The longer and may in practice, the greater knowledgeable they shall be and the raise your assets will probably be protected while you seek to eliminate debt from the budget. Remember, there isn’t a shame in declaring bankruptcy protection inside a pandemic.
About Christine A. Kingston
Consumer protection and las vegas bankruptcy laywer of Surf City Lawyers representing families facing financial hardships, burdened by debts including taxes, school loans, charge cards, medical bills, litigation, fallen behind on mortgage loan payments, or facing automobile loans they can no more afford. We stop wage garnishments and foreclosures dead in their tracks. The firm has helped clients eliminate $1.5 million in student loan debt and helped reduce principal mortgages over the bankruptcy process. The law firm is enthusiastic about helping clients achieve financial freedom from other debts and fights oppressive lenders.