No Asset Cases Close Quickly
In many Chapter 7 cases, the debtor keeps all property because the debtor’s assets are exempt. This type of bankruptcy is known as a no-asset Chapter 7. In most no-asset cases, nothing remains to be done after discharge. After the trustee files a report stating that there are no assets to administer, if there is no outstanding litigation, the court enters an order closing the case.
Disadvantages Of A Bankruptcy Discharge
Your bankruptcy protection doesn’t extend to joint account holders or cosigners on any of your debt obligations. Your personal liability for the debt is removed when you receive your bankruptcy discharge, but your cosigner remains on the hook for the entire balance of the debt. Creditors can still collect fromor even suecosigners and joint account holders for discharged debts.
You can voluntarily make payments on a debt to ensure that it’s paid in full.
Your bankruptcy discharge will additional appear on your and affect your credit score for seven years after you file for Chapter 13 protection, and for 10 years from the date you file for Chapter 7 bankruptcy.
Accounts associated with your bankruptcy might be deleted from your credit report if the date of delinquency preceded your bankruptcy filing.
Closing A Chapter 7 Bankruptcy Case
There are a few ways for your bankruptcy case to end. In the simplest case, when you have no nonexempt property that can be sold and none of your creditors objects to a discharge, the court will issue a discharge order about four to six months after you file the petition. There will be no further action in your case and the court will order it closed. If, however, you have assets that the trustee can seize and sell, your case will not be closed until all those assets have been disposed of. Depending on how complicated your property situation is, this process could take months or even years. Additionally, if any of your creditors decide to contest the discharge, your case will remain open until the court decides whether the debt in question is dischargeable.
It is also possible that the court will dismiss your case without discharging your debts. This result is generally a consequence of bad behavior, for example, if you have failed to produce necessary financial records, fraudulently transferred property that should belong to the estate, or failed to obey an order from the bankruptcy court.
Regardless of how your case is closed, the court will send you notice in the mail. The notice will come to you directly unless you have an attorney, in which case it will be sent to them. If you believe you should have received notice and you haven’t, you can check with your attorney or call the court clerk to inquire about your case status.
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How Can I Get A Copy Of My Credit Record
There are two ways to get your credit report : either through the mail or via the internet. If you want to obtain your credit report for free, you must use the mail. It is also important to do what you can to make sure your credit report shows a history of reliable credit repayments, and as few unfavorable repayment incidents as possible.
For more detailed information related to credit reporting, visit Equifax Canada or Trans Union website. Talk to a licensed trustee today. We have trustees everywhere from Calgary to Montreal and more. Get a free consultation today!
How Will Bankruptcy Affect My Credit Score
Credit scores are based on a multitude of factors. One of the factors that determine the credit score is the amount of debt a person has. Bankruptcy can assist with this by discharging debt a borrower may otherwise be obligated to pay. Another factor is open credit accounts with late payments these accounts can significantly reduce your credit score. Fortunately, bankruptcy can assist with this aspect as well. If the debt is discharged in bankruptcy, the account should no longer be reported as an open delinquent account. For more information on how bankruptcy affects credit scores and how the score is calculated,
The bankruptcy filing may last on your credit report for a few years. If you completed a Chapter 13 bankruptcy, the filing might remain on your credit report for seven years. On the other hand, Chapter 7 bankruptcy will stay on your credit report for up to 10 years. See MyFico.com.
If bankruptcy is on your credit, it does not mean you will be prevented from acquiring new debt. For instance, the waiting period for a mortgage may be a lot sooner. Many car loan lenders will have no waiting period at all you may get a loan the very next day. The FHA and Veterans Association allows borrowers to qualify for a mortgage in just two years after the discharge. See FHA Regulation 4155.4.
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How Long Does Bankruptcy Last In Canada
Not forever, fortunately. Bankruptcy is a legal process that is intended to provide a new financial start, without being unnecessarily punitive.
Your bankruptcy ends when you receive a discharge, the event that actually cancels your debts.
Several factors affect the length of personal bankruptcies in Canada.
How Long Does Bankruptcy Last In Canada?
First-time bankrupts who make very little income are often eligible for discharge after the legislated minimum period of nine months. However, your bankruptcy will last for more than nine months if you make surplus income, or if this is not your first bankruptcy.
Our Legal Help Is Affordable
You can expect upfront, transparent quotes that include the courts filing fee. Our payment plans make legal services affordable for you. We know the financial pain because weve been there. Our founder had to climb back to financial freedom after filing for bankruptcy relief. Were here to help you on your journey and make the process affordable.
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Q: How Long Does It Take To File For Bankruptcy
A: Timelines can vary. It doesnt take long at all to prepare the actual filing, but you should be prepared to take four to six months for a Chapter 7 to be filed and discharged, subject to how busy the court is, and how well prepared the filing was. You might be asked to provide more information to the trustee, or have a creditor file a dispute and these things will add time to your case. Chapter 11 and 13 can take from three to five years from filing to discharge after reorganization.
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Determining The Date A Bankruptcy Discharge Took Effect
In the world of bankruptcy, there are many different dates to keep track of. For many debtors, one of the most important is the date the bankruptcy was actually filed. Thefiling date creates a number of powerful protections, including the bankruptcy stay which prevents creditors from attempting to collect on a debt they are owed.
Other dates include the 341 creditor meeting date, the date by which motions must be filed, and of course the discharge date. The bankruptcy discharge date is the date on whichall of your qualifying debts are officially wiped away. After that, creditors cannot attempt to collect on those debts that were the subject of the bankruptcy discharge.
If you recently went through a bankruptcy, and you need to know the date of your bankruptcy discharge, there are a few different things you can do.
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Are All Of The Debtor’s Debts Discharged Or Only Some
Not all debts are discharged. The debts discharged vary under each chapter of the Bankruptcy Code. Section 523 of the Code specifically excepts various categories of debts from the discharge granted to individual debtors. Therefore, the debtor must still repay those debts after bankruptcy. Congress has determined that these types of debts are not dischargeable for public policy reasons .
There are 19 categories of debt excepted from discharge under chapters 7, 11, and 12. A more limited list of exceptions applies to cases under chapter 13.
Generally speaking, the exceptions to discharge apply automatically if the language prescribed by section 523 applies. The most common types of nondischargeable debts are certain types of tax claims, debts not set forth by the debtor on the lists and schedules the debtor must file with the court, debts for spousal or child support or alimony, debts for willful and malicious injuries to person or property, debts to governmental units for fines and penalties, debts for most government funded or guaranteed educational loans or benefit overpayments, debts for personal injury caused by the debtor’s operation of a motor vehicle while intoxicated, debts owed to certain tax-advantaged retirement plans, and debts for certain condominium or cooperative housing fees.
Review Your Reports Once The Time Is Up
Once your bankruptcy has been completed and the seven- or 10-year clock has expired, review your reports again to make sure the bankruptcy was removed.
A bankruptcy should fall off your credit reports automatically, but if it doesnt, notify the credit bureaus and ask to have the bankruptcy removed and your reports updated.
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Will Bankruptcy Wipe Out All Of My Debts
While bankruptcy does discharge most debts , there are some debts that are not affected by a bankruptcy discharge . Typically, these are debts owed to the government , debts incurred as a result of a marital separation , student loans, and debts incurred through fraud or other improper means.
For more information on Timeline Of Bankruptcy In Florida, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling 538-4188 today.
How Long You Actually Be Bankrupt
This is the period of time from the date you file bankruptcy until the day you are discharged . For someone filing bankruptcy for the first time with modest income, bankruptcy lasts nine months and one day. In other words, if you perform all of your duties properly your bankruptcy will be completed nine months and one day from the date your bankruptcy started.
If your income is higher than the government standards your bankruptcy will last 21 months and one day.
Of course if you do not your bankruptcy will last until you do there is no time limit on bankruptcy.
If you decide to file for bankruptcy make certain you understand what is required of you during the bankruptcy and do your best to comply with the rules.
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Budgeting After Chapter 7 Bankruptcy
Many people file for bankruptcy due to no fault of their own after experiencing an unexpected event, such as an illness, job loss, or divorce. Even so, everyone can benefit from cutting unnecessary costs and building a nest egg to fall back onnot just those who filed for bankruptcy to wipe out credit card balances.
Reviewing your spending habits and making a comfortable budget is a commonsense place to start. Avoid buying items on credit that you can’t afford to pay for in cash. If you take out new credit cards, pay off most, if not all, of your account balance each month so that you don’t accrue interest.
How Can The Debtor Obtain Another Copy Of The Discharge Order
If the debtor loses or misplaces the discharge order, another copy can be obtained by contacting the clerk of the bankruptcy court that entered the order. The clerk will charge a fee for searching the court records and there will be additional fees for making and certifying copies. If the case has been closed and archived there will also be a retrieval fee, and obtaining the copy will take longer.
The discharge order may be available electronically. The PACER system provides the public with electronic access to selected case information through a personal computer located in many clerk’s offices. The debtor can also access PACER. Users must set up an account to acquire access to PACER, and must pay a per-page fee to download and copy documents filed electronically.
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How Does The Debtor Get A Discharge
Unless there is litigation involving objections to the discharge, the debtor will usually automatically receive a discharge. The Federal Rules of Bankruptcy Procedure provide for the clerk of the bankruptcy court to mail a copy of the order of discharge to all creditors, the U.S. trustee, the trustee in the case, and the trustee’s attorney, if any. The debtor and the debtor’s attorney also receive copies of the discharge order. The notice, which is simply a copy of the final order of discharge, is not specific as to those debts determined by the court to be non-dischargeable, i.e., not covered by the discharge. The notice informs creditors generally that the debts owed to them have been discharged and that they should not attempt any further collection. They are cautioned in the notice that continuing collection efforts could subject them to punishment for contempt. Any inadvertent failure on the part of the clerk to send the debtor or any creditor a copy of the discharge order promptly within the time required by the rules does not affect the validity of the order granting the discharge.
May The Debtor Pay A Discharged Debt After The Bankruptcy Case Has Been Concluded
A debtor who has received a discharge may voluntarily repay any discharged debt. A debtor may repay a discharged debt even though it can no longer be legally enforced. Sometimes a debtor agrees to repay a debt because it is owed to a family member or because it represents an obligation to an individual for whom the debtor’s reputation is important, such as a family doctor.
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Become An Authorized User On A Credit Card
If you dont want to take out a secured credit card, you can ask a family member or friend who has good credit to add you as an on one of their credit cards. You may see an increase in your credit score if the issuer reports the cards positive payment history to the three main credit bureaus. However, your score could take a dip if the primary cardholder makes a late payment or maxes out their credit limit.
Phase : Discharge Case Closed
Once the bankruptcy trustee has determined that thereâs no property they can sell for the benefit of creditors, theyâll file a Report of No Distribution. This lets everyone know that itâs a no-asset case and can happen anytime after the 341 meeting. No asset cases are typically closed by the court within 1 – 2 weeks or so.
If the trustee hasnât filed a Report of No Distribution, the case will stay open until the trustee signals to the court that theyâve completed their work on the case. How long this process takes can vary greatly, as it depends on what kind of property the trustee is selling and what else is going on in the case.
In some cases, all the trustee is waiting for is the filer’s tax return for the year their bankruptcy case is filed in. If no specific exemption for a tax refund exists, a portion of the refund may be used by the trustee to pay creditors.
Usually, not much else is required from the filer during this process. But, if the trustee asks for additional information or otherwise requests assistance with the sale of property, the filer has a duty to help.
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How Long Does It Take For A Bankruptcy Discharge After The Meeting Of Creditors
Also known as the 341 hearing or 341 meeting, the meeting of creditors is an important stage of the California bankruptcy process in both Chapter 7 and Chapter 13 cases. Our Roseville bankruptcy attorneys explain how the meeting of creditors fits into the bankruptcy timeline in both chapters, including how long into a bankruptcy case the meeting of creditors occurs, and how long it takes for a bankruptcy discharge after the 341 hearing has concluded.
Chapter 13 Discharge Frequently Asked Questions
How long does a Chapter 13 discharge take?
Once the discharge process begins, it can take 6-8 weeks for the discharge to occur. This process starts once you have completed your payment plan over 3-5 years and meet all other requirements. The Chapter 13 Trustee will do a final audit to make sure all payments have been completed.
Are any debts discharged in Chapter 13?
To better understand what a discharge means under a Chapter 13 bankruptcy, it is important to know what types of debt are dischargeable and what are your debt obligations.
Priority debt is difficult to remove from your payment plan. Most dischargeable debt is considered a non-priority and often unsecured debt. Examples of dischargeable debt includes:
- medical bills
- personal loans from family or friends
- past-due utility bills.
In most cases, once you complete your Chapter 13 payment plan, you are relieved from this debt. If your dischargeable debt is secured, you must either continue making your payments on it during your bankruptcy or you can surrender the collateral asset .
Can a Chapter 13 be Discharged Early?
There are four ways in which you can get a Chapter 13 discharged early:
How will my credit score be affected after a Chapter 13 discharge?
While you are in a Chapter 13, a notation will be on your credit report. That notation will clear from your credit report 2-4 years after your discharge.
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