Rating:(0
ratings)
Views: 288
Discussions: 0
In Watch Lists: 1
Answer:
There are many consequences to filing a bankruptcy petition. Some are positive and some are negative. How a bankruptcy filing will affect a debtor depends on many factors, including the nature and extent of the debtor's assets and liabilities. Specific questions as to the effect of a bankruptcy filing on a debtor's assets should be addressed to an attorney with knowledge and experience in bankruptcy law whenever possible.
Generally, those considering bankruptcy should be aware of the following:
Not all debts can be discharged. Some examples of debts that are not discharged in a chapter 7 case include: child and spouse support obligations, most tax debts and most educational loans (i.e., "student loans"). Please refer to section 523 of the Bankruptcy Code for further information.
Secured creditors retain some rights which may permit them to seize the debtor's property, even after the debtor receives a discharge.
Failure to timely file the required documents, such as the matrix of creditors, a certificate of credit counseling (discussed below), the bankruptcy schedules or the bankruptcy statements, may result in dismissal of the bankruptcy case. Failure to file these documents may also result in the debtor being barred from filing another bankruptcy petition for 180 days.
It is extremely important that all information submitted to the Bankruptcy Court, the trustee appointed to the case, and the United States trustee is complete and accurate.
Fraudulent information from and acts of concealment by the debtor are grounds for denial of a discharge and may be punishable as a criminal offense.
Debtors who have been awarded a discharge in a previous bankruptcy case may not be eligible for a discharge in a later case, depending on the time that has elapsed between the filing of the two. See the above discussion on debtors who have received prior discharges.
Debtors who have had a previous bankruptcy case dismissed may have the automatic stay limited to only thirty days or have no stay at all, depending on the number of pending cases within the year prior to filing the newest case.
How will filing for bankruptcy affect my credit?
Filing for bankruptcy will show up on a debtor's credit report for several years and will likely make obtaining credit more difficult or expensive, but not impossible.
The fact that a debtor filed a bankruptcy petition can remain on the debtor's credit report for ten years under provisions of the Fair Credit Reporting Act, 15 U.S.C. § 1681. If the debtor successfully completes a chapter 13 plan, many credit reporting agencies will report that information for only seven years.
The decision to grant or deny credit in the future is strictly up to each creditor and will vary, depending on the type of credit requested. There is no law to prevent anyone from extending credit to a debtor immediately after the filing of a bankruptcy; nor is there any law that requires a creditor or potential lender to extend credit to a debtor.
How do I get a bankruptcy removed from my credit report?
The law states that credit reporting agencies may not report a bankruptcy case on a person's credit report after ten years from the date the bankruptcy case is filed. The Bankruptcy Court has no jurisdiction over credit reporting agencies. The Fair Credit Reporting Act, 15 U.S.C. Section 1681, is the law that controls credit reporting agencies.
If you believe that there is an error in your credit report and want to correct it, you should contact the credit reporting agencies.
The Federal Trade Commission, Bureau of Consumer Protection, Education Division, Washington, D.C. 20580 may also be contacted. The toll-free telephone number is (877) 382-4357. That office can provide further information on reestablishing credit and addressing credit problems.
(
