Numerous New Jersey residents struggle to meet their debt obligations. Are you one of them? If so, you more than likely explored various debt relief options available to you. You might find Chapter 7 bankruptcy intriguing since it could provide you with a fresh financial start free from most of your debts, but what does that actually mean?.
Discharge equals a release from certain debt obligations
If you choose to file a Chapter 7 bankruptcy and your petition receives court approval, your obligation to pay back certain creditors ends. Therein lays the power of bankruptcy discharge.
Are all types of debt dischargeable in bankruptcy?
No. Several types of debts do not qualify for discharge in a Chapter 7 bankruptcy. These include:
- Child support
- Student Loans
- Criminal or civil fines
- Criminal or civil restitution payments
- Most taxes
This list does not include all of the debts that do not qualify for a discharge. You also need to know that if you fail to list a certain debt in your schedules; you remain obligated to pay that debt.
After a bankruptcy petition receives approval, when do I receive a discharge?
The bankruptcy process includes deadlines that must pass before the court issues a discharge. Ordinarily, the first opportunity for you to receive a discharge comes at the expiration of 60 days after your 341 meeting. If none of your creditors files an objection to your discharge during those 60 days, you could receive a discharge thereafter.
Can creditors still contact me if for debts included in the discharge?
No. Creditors cannot contact or harass you in an attempt to collect on a debt discharged in the bankruptcy. If a creditor continues to contact you, you could file a motion with the bankruptcy court to stop the harassment.
Think a Chapter 7 bankruptcy might be right for you?
If you face financial difficulties that you cannot resolve on your own, a Chapter 7 bankruptcy could provide you with the debt relief and the fresh financial start you desire. You more than likely need answers to numerous questions about this form of bankruptcy before you make your final decision.
If you want to find out if you meet the qualifications to pursue it, a bankruptcy attorney could provide you with answers you need. If, after a full case evaluation, you believe that this course of action will provide you with the relief you need, he or she can provide you with invaluable assistance in submitting a petition and seeking court approval for a discharge of those debts that qualify.