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Planning for discharge of your bankruptcy

On Behalf of | Dec 13, 2021 | Uncategorized

Realizing that you don’t have control of your finances is a scary thought. You’ll have to try to find a way to get the creditors taken care of or you face years of collection attempts. It’s imperative that you consider all your options so you can enjoy a fresh financial start. 

One of the options that you have is to file for bankruptcy. This court process enables you to get that fresh start. 

If you file a Chapter 7 case, you won’t make payments to the bankruptcy trustee but any non-exempt assets you may have will be liquidated to pay creditors. (t should be noted that most people who go this route have little or no assets they stand to lose.) In a Chapter 13 case, you make regular payments to the trustee to pay off part of the debts. Once you meet the court’s requirements, any remaining balances on the covered debts are discharged.

What happens to debts that are discharged?

A debt that is discharged in bankruptcy must be written off by the creditor. The creditor can’t collect on it. This means that they can’t send it to another company to try to collect it either. 

Once the debt is discharged, you will receive documentation from the court. If another collection attempt is made, that notice from the court should suffice to make them stop. Be sure to keep a copy of the discharge in case you need to have your credit report corrected in the future. 

If you’re drowning in debt, you might be eagerly awaiting the day when you don’t have to worry about checking your mail or answering the phone. Filing for bankruptcy is one way that this can happen. Whether you file a Chapter 7 or a Chapter 13, the discharge date of the bankruptcy is one that you’ll probably look forward to seeing. The sooner you get the process started, the sooner you’ll be able to get the relief you need. 

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