The Automatic Stay A big “Stop Sign” to the creditors. The automatic stay is probably the most important feature of Chapter 7 Bankruptcy, separate and apart from actually receiving a discharge of debts. The commencement of a bankruptcy case imposes an immediate automatic restraining order upon all creditors, regardless of the bankruptcy chapter that is [...]
Reaffirmation Of Debts, Redemption of Collateral (Part 3 of 3) The process of agreeing to a reaffirmation is often prone to creating conflicts between the lawyer and client. The client is demanding that the lawyer sign the client’s proposed motor vehicle reaffirmation agreement, and the lawyer does not want to do so. Reaffirmation from the [...]
Debts Not Affected By Discharge (Part 1 of 2) Nondischargeable debts. Chapter 7 bankruptcy does not discharge every kind of debt. If we look at Section 523 of the Bankruptcy Code, it sets forth a laundry list of different types of obligations that are not dischargeable. The best way to understand the likely difference between [...]
Reaffirmation Of Debts, Redemption of Collateral (Part 1 of 3) Reaffirmation agreement . A reaffirmation is an agreement between the debtor and a creditor that a particular debt will not be discharged in the bankruptcy case. This is most typically done with secured debts covering personal property, such as motor vehicle loans and also with [...]
Reaffirmation Of Debts, Redemption of Collateral (Part 2 of 3) Can the debtor safely ignore the Bankruptcy Code requirement that collateral has to reaffirmed or surrendered? Prior to enactment of the 2005 amendments to the Bankruptcy Code, case law concerning reaffirmation agreements held that the collateral could not be repossessed so long as the debtor [...]
Your bankruptcy case may be dismissed on the grounds of “abuse” (Part 2 of 2) Attorneys beware: There can be possible attorney liability and sanctions against you for the filing of a case that court finds is an abuse of Chapter 7! (Because this section is intended for lawyers to read, we have reproduced below [...]
Chapter 7 Effect On Liens Liens normally remain. One of the most fundamental protections for creditors under Chapter 7 is the fact that liens normally pass through Chapter 7 unaffected by the debtor’s discharge. Types of liens. A lien is a security interest affecting some type of property owned by the debtor. Most typically in [...]
Exempt Property - Assets That Are Protected (Part 3 of 3) Where to find the list of exemptions . Below is a link for the exemptions that are available to debtors who file a bankruptcy case in California. The California debtors can choose between the two separate sets of exemptions. Depending on the kind of [...]
Your bankruptcy case may be dismissed on the grounds of “abuse” (Part 1 of 2) Traditional basis for finding abuse. A chapter 7 case filed by a person with primarily consumer debts may be dismissed, (or converted to a Chapter 13 case with the consent of the debtor) in a situation where the court finds [...]
Exempt Property - Assets That Are Protected (Part 1 of 3) Asset protection. Providing the honest debtor with a “fresh Start” is the core principle of bankruptcy law. In order to make the “fresh Start” a reality, the law is very generous about the assets that a person in bankruptcy is allowed to keep. The [...]