During a chapter 7 bankruptcy discharge, a person can eliminate their liability for certain outstanding debts. The discharge is a court order prohibiting creditors from making further collection attempts. Filing for a chapter 7 bankruptcy does not allow all debts to be removed, and the availability of a discharge depends on factors such as bankruptcy type, debtor status and debt type.
Other Effects of Chapter 7 Discharges
The primary effect of chapter 7 bankruptcy in Ottawa, KS is the elimination of debt, and this is the main reason why many opt for this type of bankruptcy. Other effects include:
• Positive or negative effects on one’s credit score.
• A debtor’s requirement to take a financial management course.
• Having to wait a period before being eligible for another discharge.
Which Debts Are Eliminated During Chapter 7?
In chapter 7 bankruptcy in Ottawa, KS, though not all debts can be discharged, most can. Debts from credit cards, collection agencies, personal loans, business deals, lease agreements, civil judgments, auto accident claims and tax liabilities can all be discharged. Certain debts such as spousal and child support, criminal fines, student loans and intentional injury settlements cannot be eliminated.
When Creditors Attempt to Collect on Eliminated Debts
If a person’s creditor tries to collect on a discharged debt, they will face fines and other legal consequences. Discharge orders are final and they prohibit debtors from making additional collection attempts. It should be noted that a discharge prohibits a creditor from even communicating with the debtor about the debt.
Can a Debt Discharge Be Revoked or Denied?
Courts may, at their discretion, choose to deny an application for a chapter 7 debt discharge if the filer:
• Did not furnish all the necessary documents.
• Did not finish the finance management course.
• Planned to defraud creditors.
• Engaged in criminal activity during the process.
• Did not account for all assets.
• Violated earlier court orders.
Courts may choose to revoke an already-issued discharge if it is discovered that it was granted by fraudulent means.
Does a Filer Need an Attorney’s Help in Getting a Chapter 7 Bankruptcy Discharge?
A chapter 7 discharge’s effects can be long-lasting. If a person needs help or advice in seeking a discharge, they should Contact John Hooge Law Office. The lawyer will be able to help the client file the necessary paperwork, and they will provide legal representation during court appearances.