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A Bankruptcy Attorney Can Help You Understand The Code

The federal bankruptcy laws that were put into effect in 2005 that makes it more important for the petitioner to consult an appropriate bankruptcy attorney or other expert. Then the court enters the automatic stay which precludes creditors from taking any more action against the debtor. The court then sends a notice to all creditors listed and assigns a trustee to the case. The typical case lasts from 36 to 60 months, in which the petitioner has time to turn around his financial situation and begin repaying what is owed on his property. The new bankruptcy laws, however, make it more difficult for the debtor to discharge what is owed under Chapter 13. Tax debts cannot be discharged, but this type of action can help the person who owes the IRS catch up on past amounts. The debtor also cannot discharge student loans, so this person would probably want to file for Chapter 13. Chapter 7 bankruptcy would not allow him to liquidate his student loans, but Chapter 13 bankruptcy would enable him to set up a reasonable schedule to repay the loans. One important step to take is to make a decision before the financial situation gets too bad. But many people wait until they are in the middle of a judgment or a repossession before turning to federal Bankruptcy code for protection. Sometimes, emergency measures can be worked out with the court, but many times, the process may be started too late to alleviate the situation. Many times people wait until it’s to late to file and the result is the loss of extra property.

One Response to A Bankruptcy Attorney Can Help You Understand The Code

  1. says:

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    Reply

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