{"id":6377,"date":"2008-10-16T14:25:41","date_gmt":"2008-10-16T19:25:41","guid":{"rendered":"http:\/\/magic1host.com\/blog\/2008\/10\/16\/discharging-debt-under-chapter-7-bankruptcy-laws\/"},"modified":"2008-10-16T14:25:41","modified_gmt":"2008-10-16T19:25:41","slug":"discharging-debt-under-chapter-7-bankruptcy-laws","status":"publish","type":"post","link":"https:\/\/magic1host.com\/blog\/?p=6377","title":{"rendered":"Discharging Debt Under Chapter 7 Bankruptcy Laws"},"content":{"rendered":"
by Shelby Riddenbach<\/div>\n

A debtor wanting most of the debts to be forgiven usually seeks to file chapter 7 bankruptcy instead of other types of bankruptcy such as chapter 13. Under the chapter 7 bankruptcy laws, most debts are discharged and most creditors must cease collecting efforts and any legal actions against debtors. However, the chapter 7 bankruptcy laws include many exceptions.<\/p>\n

When filing chapter 7 bankruptcy, the debtor has to comply with all the chapter 7 bankruptcy laws for the filing to be accepted. Chapter 7 bankruptcy laws are complicated so many people seek the help of a bankruptcy lawyer who can help interpret the laws and ensure compliance of the filing process. If a debtor does not comply with chapter 7 bankruptcy laws, the case can be converted or dismissed.<\/p>\n

Under the chapter 7 bankruptcy laws, creditors can file complaints and object against the discharge of their debts. If creditors do not object, the bankruptcy court will issue a discharge order based on the types of debts. The court often acts fast and a discharge order could be received only a few months after the first meeting of creditors.<\/p>\n

Most chapter 7 filers receive discharge orders granted to them but that there are certain circumstances that the court would not issue a discharge. For example, if the court finds that the debtor is taking advantage of the chapter 7 bankruptcy system or actively and willfully transfer assets out of his or her name prior to filing bankruptcy to deceive the court and creditors, then the court will rule against the debtor.<\/p>\n

Even after the discharge order has been granted, secured creditors can still attempt to collect the assets used as collaterals for the debts. If a debtor does not want to give the asset back to the secured creditor, he or she can reaffirm the debt, pay the secured creditor and keep the asset even after the bankruptcy ruling.<\/p>\n

Creditors are forbidden to harass the debtors once a discharge order has been granted. Secured creditors can collect the debts but unsecured creditors must stop all legal actions and harassment. If the debt has been sold to collection agencies, them too must stop all collection efforts after bankruptcy.<\/p>\n

Debts that are not discharged under the chapter 7 bankruptcy laws, however, can still be collected even after the bankruptcy case is closed. Examples of such debts are alimony, child support, taxes, guaranteed loans and debts that were intentionally created to take advantage of the chapter 7 bankruptcy laws.<\/p>\n

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About the Author:<\/div>\n
Chapter 7 Bankruptcy Laws<\/a> are usually difficult to understand, yet it is extremely important that you do so if you are thinking of filing for Chapter 7 bankruptcy. If you are, or are already in a bankruptcy situation, visit us at the Bankruptcy Laws<\/a> Organization today to learn all about your bankruptcy options in plain English.<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A debtor wanting most of the debts to be forgiven usually seeks to file chapter 7 bankruptcy instead of other types of bankruptcy such as chapter 13. Under the chapter 7 bankruptcy laws, most debts are discharged and most creditors must cease collecting efforts and any legal actions against debtors. However, the chapter 7 bankruptcy laws include many exceptions.<\/p>\n","protected":false},"author":1715,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[77],"class_list":["post-6377","post","type-post","status-publish","format-standard","hentry","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/6377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1715"}],"replies":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6377"}],"version-history":[{"count":0,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/6377\/revisions"}],"wp:attachment":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}