Is spousal support dischargeable in bankruptcy?
Is spousal support dischargeable in bankruptcy?
Filing for bankruptcy to avoid an obligation to pay spousal support is a bad idea, because domestic support obligations cannot usually be “discharged” (cancelled or forgiven) in a bankruptcy proceeding. The general rule is that a debt for a “domestic support obligation” is not dischargeable.
Can a judgment be discharged in bankruptcy?
If a creditor gets a judgment against you and the debt is dischargeable in a Chapter 7 bankruptcy, filing for bankruptcy will wipe out a creditor’s ability to collect. And liens don’t go away in bankruptcy automatically. So it’s possible to wipe out a judgment in bankruptcy and remain obligated to pay the lien.
What debts Cannot be discharged in bankruptcy?
Debts Never Discharged in Bankruptcy Alimony and child support. Certain unpaid taxes, such as tax liens. However, some federal, state, and local taxes may be eligible for discharge if they date back several years. Debts for willful and malicious injury to another person or property.
What happens if a creditor objects to discharge?
If the court grants a creditor or trustee’s objection to a debt discharge, you’ll remain responsible for paying the debt. Interested parties such as creditors or the trustee still have time to object to your bankruptcy discharge after your initial hearing.
What happens if you forget to list a creditor?
Any debt you fail to list in an asset case won’t be discharged. If, however, yours is a no-asset Chapter 7 bankruptcy (there’s no money to repay creditors), the debt still might be discharged. whether you inadvertently or fraudulently omitted the debt, and. whether the omission harmed or prejudiced the creditor.
How long does it take for discharge after meeting of creditors?
about 60 days
What happens after your meeting of creditors?
Your creditors have 60 days from the date of your initial meeting of creditors to object to your discharge. If no creditors object and you’ve completed all other requirements (such as filing your certificate of debtor education), then you’ll receive your discharge after the deadline for filing objections passes.
What can you not do after 341 meeting?
After The 341 Meeting
- Make nonexempt property available to the trustee.
- Handle any reaffirmed debts.
- If you have debts that won’t be affected by your bankruptcy filing, such as back taxes or child support obligations, you should continue making payments on those debts.
- Wait for creditors to file challenges.
Are 341 meetings scary?
Judging by the questions people ask about 341 meetings, people seem to think they’re going to be very scary and intimidating. As long as you’re going in with a trusted bankruptcy lawyer on your side, there is no reason to be nervous.
How long does a 341 meeting last?
ten minutes
Does Chapter 7 trustee check your bank account?
Generally, chapter 7 trustees do not monitor your bank accounts after the filing of your case.
Do they freeze your bank account when you file Chapter 7?
Do they freeze your bank account when you file Chapter 7? Generally, no. Especially if the full amount in the account is protected by an exemption. Some banks (most notably, Wells Fargo) have an internal policy of freezing bank accounts with a balance over a certain amount once they learn about a bankruptcy filing.
How much cash can you keep when filing Chapter 7?
There is not a specific cash exemption available under federal bankruptcy exemptions. However, there is a wildcard exemption you can use to protect up to $1,325 in any property. You can also use up to $12,575 of any unused portion of a homestead exemption to protect cash in a Chapter 7 case.
Which is worse on credit Chapter 7 or 13?
A Chapter 13 bankruptcy involves repaying some or all of your debt over a three- to- five-year period, while a Chapter 7 bankruptcy involves wiping out most of your debts without paying them back. In that way, a Chapter 13 may be better for your credit than a Chapter 7.
What happens if I convert from a Chapter 13 to a 7?
In turn, the trustee disperses the funds to creditors. Sometimes, however, the filer can’t continue funding the repayment plan due to a financial change and converts the case to a Chapter 7 bankruptcy. If the Chapter 13 trustee is holding any plan payments for your creditors, the funds will be returned to you.
What happens when you surrender your house in Chapter 7?
When you surrender property in Chapter 7 bankruptcy, you essentially give it back to the creditor. When you surrender the property, the creditor’s lien is removed. When you get the bankruptcy discharge, your personal liability for the secured loan is wiped out.
How long after foreclosure can bank sue for deficiency?
three months
Can you give your house back to the mortgage company?
You cannot give a house back to the mortgage company quite this easily. There is a process you must follow, and you must start the process before the foreclosure process begins. You can only pursue a deed in lieu of foreclosure if you are actually behind in your payments.
Can I walk away from my house after Chapter 7?
If you received a discharge in your bankruptcy, then your mortgage was discharged. That means that you can walk away from the house and stop paying the mortgage and the mortgage company cannot pursue for the mortgage amount. Their only remedy is to foreclose on the house.
Is surrendering your home the same as foreclosure?
The primary difference between surrendering a home and foreclosure is the possibility of owing money after the sale. When a home is surrendered, a foreclosure will ensue — but only as a means of clearing title so the bank can sell the home.
What happens if mortgage is not reaffirmed?
If you do not reaffirm the mortgage, your personal liability for paying the debt represented by the promissory note is discharged in your bankruptcy case. The company can foreclose the mortgage and force a foreclosure sale if you stop making payments.
What happens to a house after bankruptcies?
After filing for Chapter 7, your property will go into a bankruptcy estate held by the Chapter 7 bankruptcy trustee appointed to your case. However, you don’t lose everything because you can remove (exempt) property reasonably necessary to maintain a home and employment.
Can I sell my house if I did not reaffirm?
Yes, you can sell the home. The effect of no reaffirmation is that you do not have a personal obligation to pay the mortgage. You still are the titled owner and the mortgage is still a lien on the property so it must be paid in order to sell the property.
Can I refinance if I did not reaffirm my mortgage?
First of all, there is no legal reason at all why you can’t refinance a loan that was not reaffirmed. Reaffirmations are not required for mortgage loans and they are almost always a really bad idea. A reaffirmation agreement effectively takes the loan out of your bankruptcy discharge.
Can I reaffirm debt after discharge?
You cannot reaffirm any debt after your bankruptcy has been discharged. Bankruptcy law requires any reaffirmation to occur before the discharge is entered. In addition, the only reason to reaffirm is to persuade the mortgage company to report your ongoing payments to the credit bureaus.
Should I reaffirm my mortgage after Chapter 7?
Debtors do not have to reaffirm a mortgage debt. Generally, there is no reason to reaffirm a mortgage obligation unless the mortgagee has agreed to modify one or more of the mortgage terms so that keeping the mortgage is much, much more beneficial.
