Bankruptcy does have an effect on a person’s financial state. Despite this, filing bankruptcy often provides a necessary fresh start for individuals experiencing financial problems and difficulty repaying debts. An experienced and qualified bankruptcy attorney may help reduce stress and uncertainty by providing valuable assistance throughout the entire bankruptcy process. Prospective bankruptcy debtors should be aware of the primary effects of a bankruptcy filing. Here is a brief summary:
*Not All Types of Debts May Be Discharged
The main purpose of bankruptcy is to discharge debts, which allows a debtor to avoid their repayment. Consumers typically discharge this legal obligation by payment. Bankruptcy provides a similar means to resolving the obligation to repay debt.
Not every circumstance allows a bankruptcy debtor to discharge a debt. In other words, not all debts may be discharged in a bankruptcy case. The dischargeability of a debt may depend on the type of chapter (bankruptcy) or the type of debt. Delinquent taxes and child support are examples of a type of debt that is nondischargeable in a bankruptcy case.
Bankruptcy Filings Are Public Records
Bankruptcy cases are filed, usually electronically online, in the United States Bankruptcy Court. Anyone may access the database of filings at the Office of the Clerk of the U.S. Bankruptcy Court or even online with an account. All information related to a bankruptcy case, including the documentation filed by the debtor, all proofs of claim filed by creditors, as well as any other filed and docketed items are available for public access.
*Bankruptcy Affects Credit
The public record of a Chapter 7 bankruptcy does last for ten (10) years. All other bankruptcy references on a credit report remain for seven (7) years, such as third-party collection debts, judgments and tax liens discharged through bankruptcy, trade lines indicating “Account included in bankruptcy,” and Chapter 13 public record items.
The experienced Sacramento metropolitan area/Northern California defense attorneys at the Montefalcon Law Offices are here to help you if your financial position necessitates the consideration of a bankruptcy case filing under Chapter 7, 11, or 13. Contact us online or schedule a free consultation at any of our three conveniently located offices. Telephone our downtown Sacramento office at (916) 444 0440, our south Sacramento office at (916) 399-9944, or our Concord office at (925) 222-5929.