The Bankruptcy Discharge And Other Questions
What’s a ‘bankruptcy discharge’ and what are the qualifications?
A bankruptcy discharge is a court order which states that you’re not required to pay your debts to those creditors eligible for a discharge.
Non-discharged debts include student loans, alimony-maintenance, child support, most kinds of taxes, government fines and penalties, and a few other types.
The effect of a discharge is that you’ll be freed from liability for all discharged debts, and all your creditors whose debts were discharged are immediately barred from doing anything to attempt to collect from you.
Can I file a bankruptcy more than once?
If you’ve previously received a discharge in a Chapter 7 filing, you must wait 8 years before filing again, but you can file for a Chapter 13.
How long will the bankruptcy remain on my credit reports?
According to the Fair Credit Reporting Act, 15 USC § 1681c(a)(1), no consumer credit reporting agency is allowed to report any filings after a period of ten (10) years from the date when the court’s discharge order was granted.
Can I repay my relatives, friends or employer for money they lent me before I filed?
If you’ve suffered from credit problems, it’s natural to want to repay your family and friends before you repay other, corporate-type creditors. Yet, the court considers this as preferential treatment which is forbidden prior to filing.
This prohibition includes not only debts to your friends and family, but also any corporate debt, such as a “favorite” credit card that you wish you could keep after your bankruptcy filing.
However, if you make any preferential payments within a 90- to 365-day period prior to your filing, the court may force those creditors who received preferential treatment to give the money to the Bankruptcy Trustee, to be paid to the unsecured credits.
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Copperstone P.C. is Tucson’s best bankruptcy law firm
Copperstone P.C. helps Tucson residents burdened by debt. We can help protect you and win relief from debt. If you want a fresh start in your credit life, Copperstone P.C. can help.
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