Richmond County, GA Chapter 20 Bankruptcy

Richmond County, GA Chapter 20 Bankruptcy

Bankruptcy will discharge most of your debts. When a debt is discharged in bankruptcy, it is no longer enforceable against you personally. The debtor is no longer required to pay the debt, or the portion of the debt that has been discharged. You cannot be subject to collection activity on the debt, including being sued on the debt. Creditors can, however, take steps to seize any secured asset on which there is a valid lien that has not been discharged (or cleared) by the bankruptcy court. A bankruptcy discharge serves to erase the debt and give the debtor a fresh start financially. Some debts must still be cleared. It is a rather longish list, but these debts will not be discharged: taxes; spousal and child support; debts arising out of willful misconduct and or malicious misconduct by the debtor; liability for injury or death from driving while intoxicated; non-dischargeable debts from a prior bankruptcy; student loans; criminal fines and penalties and forfeitures. Bankruptcy does not free the debtor from debts incurred for money, property, services, or an extension, renewal, or refinancing of credit, to the extent obtained by false pretenses, a false representation, or actual fraud, other than a statement respecting the debtor’s or an insider’s financial condition.

When a debtor files a “Chapter 7” bankruptcy to discharge unsecured debts, followed by a "Chapter 13" bankruptcy to allow the debtor to catch up on mortgage payments, it is referred to as a “Chapter 20” filing The 2005 Bankruptcy Reform Act attempts to limit "Chapter 20" bankruptcies by imposing limits on the filing of successive bankruptcies. Under current bankruptcy law a Chapter 13 bankruptcy can be filed only once every two years, and three years must pass after the filing of a Chapter 7 bankruptcy before a Chapter 13 filing. Some debtors attempt to overcome this law by filing for Chapter 13 protection while the Chapter 7 petition is still pending. This option is not available in all courts. In a "Chapter 20" bankruptcy, debtors should know that missing even a single mortgage payment after filing the initial "Chapter 7" petition may cost them their ability to save their house in a later "Chapter 13" filing. Be warned: some judges and creditors see the move as a scam. Creditors have the right to oppose and the judge can dismiss the action. Some judges will allow the second filing, if there is a legitimate reason.

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