What are the consequences of filing for bankruptcy?
Depending on a debtor’s financial situation and reasons for filing, the consequences of filing for bankruptcy protection may outweigh the benefits. The following information is intended as a summary only. You are strongly encouraged to consult with an attorney in order to determine the rights and obligations that apply to your individual situation.
Depending on a debtor’s financial situation and reasons for filing, the consequences of filing for bankruptcy protection may outweigh the benefits. The following information is intended as a summary only. You are strongly encouraged to consult with an attorney in order to determine the rights and obligations that apply to your individual situation. Those considering bankruptcy should be aware of the following: • Not all debts are dischargeable. Ex: Secured creditors retain some rights which may permit them to seize property, even after a discharge is granted. Spousal and child support obligations and most tax debts are not dischargeable. • Within 15 days of the filing of a bankruptcy petition, schedules of the debtor’s assets and liabilities must be filed. Failure to timely file the appropriate schedules may result in dismissal of the bankruptcy case. • If a case is not dismissed and a discharge is entered by the court, the debtor is prohibited from being granted another discharge unde
Depending on a debtor’s financial situation and reasons for filing, the consequences of filing for bankruptcy protection may outweigh the benefits. Those considering bankruptcy should be aware of the following: a Filing for bankruptcy protection is not free. There are filing fees and, if you use an attorney, legal fees. b. Not all debts are dischargeable. For example, secured creditors retain some rights which may permit them to seize property, even after a discharge is granted; spousal and child support obligations and most tax debts are not dischargeable. c. Within 15 days of the filing of a bankruptcy petition, schedules of the debtor’s assets and liabilities must be filed. Failure to timely file the appropriate schedules will result in dismissal of the bankruptcy and the barring of the debtor from filing again for 180 days (six months). d. If a case is not dismissed and a discharge is entered by the court, the debtor is prohibited from being granted another discharge in chapters 7
Individuals and businesses sometimes reach a level of financial difficulty that a decision is made to look into the possibility of filing for bankruptcy. Indeed, there are situations where choosing bankruptcy is the most logical course. At the same time, bankruptcy filing should never been seen as an easy way to get out from under a mountain of financial obligations. There are consequences to filing for bankruptcy that should be carefully weighed against the benefits. Here are a few examples. First, a bankruptcy can make it very difficult to obtain credit in the future. Many people are under the impression that it is easy to obtain credit just after filing a Chapter 7 bankruptcy. Up to a point, there is some truth in this, as high risk credit card providers will often extend credit lines to people who have filed bankruptcy recently. However, it is common in many cases to limit credit to individuals and businesses for major purchases for a period of up to two years after the bankruptcy
Depending on a debtor’s financial situation and reasons for filing, the consequences of filing for bankruptcy protection may outweigh the benefits. The following information is intended as a summary only. You are strongly encouraged to consult with an attorney in order to determine the rights and obligations that apply to your individual situation. Those considering bankruptcy should be aware of the following: • Filing for bankruptcy protection is not free. How much does it cost? The filing fee for a Chapter 7 is $209.00 The filing fee for a Chapter 11 is $839.00 The filing fee for a Chapter 12 is $239.00 The filing fee for a Chapter 13 is $194.00 For additional fees, please refer to the fee schedule. • Not all debts are dischargeable. Ex: Secured creditors retain some rights which may permit them to seize property, even after a discharge is granted. Spousal and child support obligations and most tax debts are not dischargeable. • Within 15 days of the filing of a bankruptcy petition,
