This is very simple in concept and in practice. A bankruptcy discharge bars creditors who are subject to the discharge from ever taking any collection action against the individual who filed for bankruptcy protection. It is issued at the end of an ordinary consumer case and effectively concludes the case successfully (though the court must Read More »
So long as the court did not enter an order barring you from filing a new case, then you are free to file another case after your prior case was dismissed. There are a few repercussions that you must address in the new filing. If you file a new case after you had one case Read More »
The Bankruptcy Code requires that all creditors be included in the bankruptcy petition and be provided notice of the bankruptcy filing. That said, mistakes happen and creditors do get missed. If the mistake is recognized while the bankruptcy case is still pending, then you are allowed, and have the obligation to, have the creditor added Read More »
Yes. Filing for bankruptcy is an individual decision and you can file without including your spouse in the case. Your spouse will still be required to provide some information for the preparation and filing of the bankruptcy petition, particularly surrounding their income and expenses, as all household income must be accounted for in the Current Read More »
A bankruptcy discharge will always have a negative impact on a joint debtor, even if the joint debtor does not file for bankruptcy protection themselves. Their credit report will be updated to reflect that the joint debtor filed for bankruptcy and, even though their liability on the debt remains, the reporting is seen as negative Read More »
Bankruptcy can remove personal liability to the creditor for a debt assigned to the filing party in the divorce decree, however the debtor may still remain liable to their ex-spouse. The ex-spouse also has the right to object to the discharge of the debt, arguing that since the debtor is liable for it pursuant to Read More »
There is an old adage in bankruptcy, “divorce your debts before you divorce each other”. The reasoning behind this is that jointly held debt is often a point of contention in bankruptcy proceedings, particularly as to who will be responsible for the debts after the divorce. If appropriate, a jointly filed bankruptcy will eliminate the Read More »
No. Child support, spousal support and alimony are provided special treatment under the Bankruptcy Code and are not discharged at the end of the case. You can, however, pay off any past due amounts in a Chapter 13 bankruptcy while under the protection of the Automatic Stay of Bankruptcy. These debts take priority over general Read More »
Any changes in income have to be disclosed to the court, usually by amending your bankruptcy petition, as soon as possible. In Chapter 7, a change in income will only impact your case if there is a significant increase in your income. Depending on the size of the increase in income and the timing of Read More »
The ability to contribute to a retirement account during a bankruptcy, particularly a Chapter 13 bankruptcy, varies from jurisdiction to jurisdiction, as the Bankruptcy Code does not contain any specific provisions regarding retirement contributions. There are exceptions, of course. Mandatory contributions to a pension fund are allowed, as they are part of your employment/union agreement. Read More »