What does the completion of a successful Chapter 7 "straight bankruptcy" case look like? What happens to your debts?
Finishing a Chapter 13 case successfully is a big deal. It is rewarding financially and emotionally. Here's how it happens.
When deciding between Chapter 7 and 13, if you choose a Chapter 13 payment plan realize that converting later to Chapter 7 is an option.
The Bankruptcy Code explicitly says that, at the request of the person in a Chapter 13 case, the bankruptcy "court shall dismiss" the case.
Usually it's not hard to avoid getting into a dispute with your trustee. But you need to know the law and follow it.
If there's a risk you would not get the immediate benefit of the automatic stay, be aware of it and be prepare to prove your "good faith."
Don't jeopardize an indispensable benefit of filing bankruptcy--immediate protection from your creditors.
"Credit counseling" has to be done shortly before filing bankruptcy, "debtor education" shortly after. The latter may even be worthwhile.
The decision to file a Chapter 13 case may be an easier one if you know that you can always change it into a Chapter 7 one if needed.
Yes, the "discharge"--write-off--of your debts does not happen until the end of your 3-to-5-year case. Thus there are some resulting risks.
You and your spouse may need the extraordinary benefits of Chapter 13, but things get awkward if your marriage ends before the case does.
Whether you must pay for 3 years or 5 depends mostly on your income. Exactly how long it last depends on the many moving parts of your case.
It's a formal proposal about how much you'll pay your creditors. It is, often after some adjustments, "confirmed" by the bankruptcy court.
It's a matter of timing. And that timing depends on whether you previously filed under Chapter 7 or 13, and what you are filing under now.
No. The bankruptcy court respects and doesn't change the support decisions of your divorce court. But bankruptcy can still help.