“Relief from the Automatic Stay”
Creditors sometimes have grounds to ask for permission to resume or start collection action against you in spite of your bankruptcy filing.
“Credit Counseling” and “Debtor Education”
These two requirements are quite straightforward to accomplish, but can trip you up if you don't take care of them when you need to.
The Bankruptcy Chapters–Chapter 7, 9, 11, 12, 13 Cases
You file bankruptcy most likely under Chapter 7 or 13, or possibly 11. Ch. 12 is for farmers and fisherman, Ch. 9 for governmental entities.
“Priority” Wages and Benefits Owed to Employees
If you owe an employee wages or benefits, it's likely a priority debt. Same if you are owed wages or benefits. More likely to be paid.
Can “Priority” Debts Be Discharged in Chapter 7 Bankruptcy?
A bankruptcy trustee would pay your "priority" debts ahead of other debts in an "asset case." But what happens in a "no asset case"?
“Priority” Debts in Chapter 7 Bankruptcy
Here's what happens to "priority" debts in an "asset case."
Example of How Chapter 13 Handles a Creditor with a Disputed Lien
Here's a scenario showing how Chapter 13 solves problems that Chapter 7 doesn't solve in dealing with a creditor's disputed lien.
When a Creditor Does Not Enforce its Lien in Chapter 13
When a creditor fails to enforce its lien in a Chapter 7 case, you are left exposed. Not so under Chapter 13.
Catching up on Your Home Mortgage through Chapter 13
You have much, much more time to catch up on unpaid mortgage payments, as well as any unpaid property taxes.
Surrendering Real Estate Other than Your Home in Bankruptcy
Chapter 7 writes off your mortgage debt, many other debts against the property, and potentially pays your "priority" debts as well.
Addressing a Child or Spousal Support Lien through Bankruptcy
A support obligation is a very special kind of debt, and the resulting lien on your home has to be dealt with in a very special way.
Keeping Your Home through Chapter 7
Chapter 7 usually lets you retain your home if you are current (or not too far behind) on your mortgage payments (& other home-based debts).
Debts Not Discharged in Chapter 7 Bankruptcy
Most debts can be discharged--permanently eliminated--in bankruptcy. Here are the exceptions.
The Discharge of Debts in Bankruptcy
In your goal of getting a fresh financial start, your most important tool is the "discharge"--the permanent legal elimination of your debts.
The 3 Kinds of Debts
Your debts can be "secured," "priority," or "general unsecured." How bankruptcy treats your debts depends on which kind they are.