Prevent Future Judgment Liens
Bankruptcy can prevent future judgment liens. It usually stops a lawsuit from turning into a judgment, and then a judgment lien on your home.
Debts Sold or Assigned to Collection Agencies
What happens if you list a creditor in your bankruptcy case but, unknown to you, it sold the debt to a collection agency that you don't list?
Failing to List Debt but the Creditor Knows about Your Case
Usually if you don'='t list a debt, it doesn't get discharged. An exception is if the creditor still learns about your case, on time.
An Example of a “Preference”
A "preference" makes more sense when you see an example. Here's one. This also helps explain how to avoid creating one.
The Automatic Stay in Chapter 7 and 13
Filing a Chapter 7 or 13 case both stop creditor collection actions against you just the same. But after that the differences are huge.
Keep an Open Mind about Chapter 7 or 13
Here's an example why to keep an open mind about filing under Chapter 7 vs. Chapter 13. Slightly different facts can make all the difference.
Treatment of Different Types of Creditors in Chapter 13
The laws about the treatment of different types of creditors can often be used in your favor to pay who you want or need to pay.
Using “Preference” Law to Your Advantage
Make your bankruptcy trustee work for you by retrieving your recent payments to, or garnishments by, creditors--to your benefit.
The “Preference” Problem
Avoid the frustrating surprise of having one your friendly creditors be challenged by your bankruptcy trustee with a preference action.
Going to Trial on a Nondischargeability Dispute with a Creditor
The trial, almost always in front of a bankruptcy judge and no jury, is the final determinator whether the challenged debt gets discharged.
Adversary Proceedings by the Debtor
Sometimes it's in your best interest to force an issue in bankruptcy court by, in effect, suing a creditor in an adversary proceeding.
Creditors Paid Nothing under Chapter 13
Chapter 13 payment plans usually have you pay something to all of your creditors. But not necessarily. Certain creditors may get nothing.
Creditor Claims and Proofs of Claim
In most Chapter 7 cases, there is not much practical effect to what creditors put on their proofs of claim.
“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.
The Debtor, Creditor, Lawyers, Bankruptcy Clerk, Trustee, and Judge
Bankruptcy is a lot easier to understand and much more comfortable to go through when you know who's who.
