Not all judgments can be discharged in a Chapter 7 individual bankruptcy filing. Certain types of obligations, including some judgments resulting from them, do not go away, according to Cornell University Law School.Know More
The most common consumer bankruptcy filing is a Chapter 7 petition. Chapter 7 allows for a fresh start, free from consumer debts such as credit card debts and other obligations you cannot pay. Sometimes a creditor may sue in court and obtain a judgment or a medical provider may sue for its bill and obtain a judgment. Those types of judgments are generally dischargeable, meaning they are wiped out, as well as the underlying debt, and the creditor cannot come after you to collect, explains Cornell University.
There are, however, some categories of judgments that are not dischargeable. The law, found at 11 U.S. Code Section 523, is complex and the following list is not exhaustive. These obligations include most taxes, educational loans, obligations for spousal and child support and any obligation that is the result of fraud or other serious wrongdoing. For instance, a judgment for injuries caused by drunk driving remains an obligation, notes Cornell University. As with all legal matters, consult a qualified attorney to answer your specific questions about your particular situation.Learn more about Credit & Lending
Chapter 7 bankruptcy, also known as liquidation bankruptcy, is a process where the debtor's non-exempt assets are sold, and the proceeds are given to his creditors to help repay his debts. Any remaining debt is forgiven, or discharged, and the debtor starts over free of debt. As of 2014, assets that may be exempt include a primary residence, a personal vehicle, household goods and clothing.Full Answer >
The purpose of a letter of explanation of a bankruptcy is to explain to a potential lender the extenuating circumstances for an unfavorable credit history. These can include loss of a job, medical problems, family member deaths and other circumstances that are unlikely to reoccur. A combination of these credible excuses sometimes help reduce the waiting period for obtaining a new mortgage after bankruptcy or foreclosure, according to Innman News.Full Answer >
To get a credit card after bankruptcy, it is important to shop around and compare offers, because many companies charge high interest rates and fees to those with poor credit ratings. Secured credit cards, which require security deposits in bank accounts, allow cardholders to improve their credit ratings before moving on to riskier unsecured cards.Full Answer >
Chapter 11 bankruptcy allows a debtor to reorganize assets and repay debt over time. This type of bankruptcy is often used by corporations or partnerships, although individuals may also file for it. Chapter 11 bankruptcy allows the company to maintain its assets and continue doing business throughout the bankruptcy process, rather than selling off assets to repay debt immediately.Full Answer >