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- Since the sweeping changes to the bankruptcy law which took effect October 17, 2005 we are only representing creditor's interests.
- Chapter 7 is the most common type of bankruptcy filing. It is often referred to as a "straight bankruptcy" however it is actually the Bankruptcy Code's "liquidation" chapter. The primary purpose of the Chapter 7 bankruptcy is to erase all dischargeable debt, giving the debtor a fresh start.
- Chapter 13 is known as a "Wage Earner's Plan". A Chapter 13 bankruptcy allows the debtor to adjust certain debt, cure arrearages, and force creditors into a payment schedule. The primary purpose ot a Chapter 13 is to allow the debtor to retain his property (avoid liquiding property) and give him a chance to repay the debt. Because certain types of debt are not dischargeable (forgiven) under chapter 7, often a debtor is forced into a plan.
- Nebraska debtors must use the exemptions given to debtors under Nebraska law, they may not use the Federal exemptions.
If you are a debtor, we will refer you to one of our many associates who will be happy to assist you with your bankruptcy. We only represent creditors at this time.
- You may find more information about bankruptcy at the court's web site:
- The Bankruptcy law is found at 11 USC, you may view the law at:
EXPLANATION OF BANKRUPTCY DISCHARGE
IN A CHAPTER 7 CASE
(reprinted from an actual discharge notice)
- This court order grants a discharge to the person named as the debtor. It is not a dismissal of the case and it does not determine how much money, if any the trustee will pay to creditors.
We do not represent individuals or companies seeking bankruptcy.
- Collection of Discharged Debts Prohibited
- The discharge prohibits any attempt to Collect from the debtor a debt that has been discharged. For example, a creditor is not permitted to contact a debtor by mail, phone, or otherwise, to file or continue a lawsuit, to attach wages or other property, or to take any other action to collect a discharged debt from the debtor. (In a case involving community properly:) (There are also special rules that protect certain community property owned by the debtor's spouse, even if that spouse did not file a bankruptcy case.) A creditor who violates this order can be required to pay damages and attorney's fees to the debtor.
- However, a creditor may have the right to enforce a valid lien, such as a mortgage or security interest, against the debtor's property after the bankruptcy, if that lien was not avoided or eliminated in the bankruptcy case. Also, a debtor may voluntarily pay any debt that has been discharged.
- Debts that are Discharged
- The chapter 7 discharge order eliminates a debtor's legal obligation to pay a debt that is discharged. Most but not all, types of debts are discharged if the debt existed on the date the bankruptcy case was filed. (if this case was begun under a different chapter of the Bankruptcy Code and converted to chapter 7, the discharge applies to debts owed when the bankruptcy case was converted.)
- Debts that are not discharged
- Some of the common types of debts which are not discharged in a chapter 7 bankruptcy case are:
- Debts for most taxes;
- Debts that are in the nature of alimony, maintenance, or support;
- Debts for most student loans;
- Debts for most fines, penalties, forfeitures, or criminal restitution obligations;
- Debts for personal injuries or death caused by the debtor's operation of a motor vehicle while intoxicated;
- Some debts which were not properly listed by the debtor;
- Debts that the bankruptcy court specifically has decided or will decide in this bankruptcy case are not discharged;
- Debts for which the debtor has given up the discharge protections by signing a reaffirmation agreement in compliance with the Bankruptcy Code requirements for reaffirmation of debts.
- This information is only a general summary of the bankruptcy discharge. There are exceptions to these general rules, because the law is complicated, please call me to determine the exact effect of the discharge in this case.