Chapter 7 Discharge Coeur d'Alene
What does bankruptcy chapter 7 discharge mean in Coeur d'Alene
The goal in filing a chapter 7 in Idaho (whether it be in Coeur D Alene, Boise, Moscow, Pocatello, Idaho Falls, or really any city) is the bankruptcy discharge. A discharge is a legal order that prohibits future collection efforts against the debt being discharged. Not all types of debt can be discharged, however. Most taxes, child support, alimony, some money owed to previous spouses due to a divorce, most student loans, court fines and criminal restitution, and personal injury caused by drunk driving/driving under the influence cannot be discharged. Even if a debt won't discharge, it is essential to list it on your bankruptcy forms. Failure to list all of your debts can be construed as fraud.
Chapter 7 Discharge Timeline and steps to a Successful Bankruptcy Discharge in Coeur d'Alene
Meet with an Idaho bankruptcy attorney for a free evaluation to learn about the types of bankruptcy , mandatory bankruptcy counseling (which may be done through an online bankruptcy service or Credit Counseling Agency which offers Credit Counseling Courses).
Potential debtors in bankruptcy will discuss their outstanding debt and their personal debt crisis. They'll learn about the Official Bankruptcy forms used in Idaho, and our staff will look at the forms in a step-by-step fashion, from the counseling, petition, schedules, statements, discharge, etc. You'll learn what type of bankruptcy will work best for you, what property is protected, what types of debts will discharge, and that liens will pass through a bankruptcy filing unaffected by it. We'll identify any nonexempt property; we recommend avoiding any transfer of property until meeting with a lawyer.
You'll receive information about our Bankruptcy Software Program to help you organize your data and your Documents. (If you have difficulty with computers, we offer a service of completing your forms in person in Coeur D Alene, Idaho.) Debts are categorized as unsecured debt or secured debt. Secured claims, or debts, have collateral, such as a house or car; unsecured debt doesn't have collateral and usually includes medical and credit card debts. An unsecured creditor cannot repossess.
A lawyer will begin working for you once you have "retained" or hired him, by paying the fee, or a portion of the fee, discussed in the initial consultation. The filing cannot occur until the full fee has been paid, because a bankruptcy lawyer cannot be your creditor and represent you AGAINST other creditors.
Complete the pre-bankruptcy credit counseling, gather Documents, and complete the Bankruptcy Software Program.
Meet with us in Coeur D Alene, Idaho, to review your documents in person, ensuring that they are accurate, complete, and thorough. You will need to furnish identification and proof of your Social Security Number and sign your Documents under penalty of perjury. We will electronically file the documents with the Bankruptcy Court Website on the day of the appointment.
Freedom and a fresh start…
After Chapter 7 Discharge, What Happens Next
Most chapter 7's close after the discharge enters because there are no personal property, assets, or money for the Trustee to collect and from which to pay creditors. However, if the Idaho Bankruptcy Trustee does collect money or assets, he will ask creditors to file a "Proof of Claim," which indicates the total debt that the creditor is owed. The Trustee will give creditors several months to file their claims, after which he will make calculations as to the pro-rated distributions those creditors will receive.
After Chapter 7 Discharge, What Should I Do
Filing bankruptcy will damage a person's credit, and it is important to take charge of your credit report to repair that damage. There is a saying that "time heals all wounds," and the same is true for credit. The more time that passes since the damage occurred, the less that damage will impact you. Beyond waiting, though, you can take steps to ensure that your credit is accurate.
I would recommend waiting 30 to 60 days after discharge to update the report to reflect the discharge. Then start reviewing your credit. If you see items on the credit report which were not listed on your bankruptcy forms, you should check with your bankruptcy lawyer to determine what steps you might be able to take. If your bankruptcy forms contain debt that is still reflected on your credit report, you should dispute those entries with the credit reporting agency.
You will also need to obtain some new credit, ensuring you manage it in a timely and responsible manner. You might consider opening a secured credit card to help in the rebuilding process. A secured credit card requires you to open a savings account, and the money will not be accessible to you.
The credit card issuer will give you a credit card with a credit limit equal to the amount you place in the savings account. Making timely payments and not maxing the card out will help you to rebuild your credit. Eventually, the credit card company should increase your credit limit, and eventually, will probably release your savings account back to you or transition you to a more conventional credit card.
How Long for Chapter 7 Discharge in CDA, ID
On average, a chapter 7 discharge will enter between 3 to 4 months after the filing date. When you file your bankruptcy forms, your bankruptcy relief enters, and your protection is in place; you do NOT have to wait for a discharge before the bankruptcy helps protect you.
Chapter 7 Discharge Taxes in Coeur d'Alene
In most cases, tax debts don't discharge in chapter 7. There are many rules and regulations to determine if taxes will discharge. If you owe taxes, consulting with a knowledgeable bankruptcy attorney is the first step in the bankruptcy process to determine if a tax might qualify to be discharged. Bankruptcy attorneys know that people who may need to file for bankruptcy are financially distressed, and most will offer evaluations to people free of charge. Only certain personal income taxes, subject to a litany of requirements, might discharge. If a person owes "trust fund" taxes, such as business taxes collected or withheld, such as sales or withholding taxes, those will never qualify to be discharged.
Will Chapter 7 Discharge Student Loans in Coeur d'Alene
Chapter 7 will not discharge student loans unless a debtor files an "adversary proceeding" (basically, a lawsuit filed within the Bankruptcy Courts) against the student loan creditor and wins that lawsuit. A debtor must prove that repaying the student loan will cause an "undue hardship." Several criteria define what an undue hardship is, and experienced bankruptcy lawyers can help evaluate whether you will meet the criteria.
Chapter 7 Discharge and Mortgage in CDA Idaho
A chapter 7 discharge will not get rid of your mortgage. If you own a home subject to a mortgage and want to keep that home, it is important to keep making the mortgage payments.
Sometimes your mortgage company might stop sending you statements; if they do, call them! Not receiving a bill is not a reason to stop making payments. Most mortgages are 30 years long, and the contract you signed requires you to make a payment every month for 30 years.
Sometimes a mortgage company might take the position that sending a mortgage statement is an "attempt to collect," which bankruptcy law prohibits. Reaffirming your mortgage debt may help correct that problem and be an additional step in rebuilding your credit.
While a person does not HAVE to reaffirm, in deciding whether or not to do so, one should consider whether or not they have a stable income and whether or not there is sufficient equity in the home to be certain that you could sell the home for enough to pay off the debt if you become unable to repay the mortgage. Keeping the debt on expensive assets when you cannot afford to do so is not a wise move.