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Bankruptcy will wipe out credit card debt, medical bills, and personal loans, but will not eliminate primary obligation debt; things like student loans, child and spousal support, and newer tax debt. Bankruptcy can also stop or delay a home or mortgage foreclosure, stop collection actions, stop garnishments and lawsuits.
Some situations in which an individual may want to consider filing for emergency bankruptcy include: Wage garnishment Creditors levying your bank accounts or property An impending home foreclosure sale Imminent car repossession. It’s not always clear when it’s the right time to file for emergency bankruptcy.
Since the debt is old and less likely to be paid, the creditor may be willing to accept less than what you owe to consider the matter closed. Foreclosures and Short Sales: Seven Years A foreclosure can remain on your credit reports for seven years from the date the foreclosure was filed.
Do Bankruptcies Come in Different Types? There are officially six separate categories of bankruptcy , each designated after a specific section of federal bankruptcy law. However, Chapter 7 and Chapter13bankruptcy are the two types of bankruptcy that are most frequently filed.
Whether you’re facing foreclosure , repossession, wage garnishments, or relentless creditor harassment, our expertise in bankruptcy law can offer the protection and relief you’ve been seeking. One of our firm’s key strengths lies in our comprehensive understanding of both Chapter 7 and Chapter13bankruptcy options.
Section 1692g(a) of the FDCPA mandates the sending of a “validation” notice within five days of a debtcollector’s initial communication with a consumer. A debtcollector is free to collect during the thirty-day period as long as it does not overshadow or contradict the consumer’s thirty-day rights. In Scott v.
The complexities of bankruptcy law, coupled with the potential consequences of a failed case, strongly suggest seeking the assistance of a qualified bankruptcy attorney for the best possible outcome. We can help you file for Chapter13bankruptcy or Chapter 7 bankruptcy, depending on your needs.
Court of Appeals for the Ninth Circuit recently reversed an award of summary judgment in favor of a defendant debtcollector against claims that it violated the federal Fair Debt Collection Practices Act (FDCPA) by attempting to collect a debt that was discharged in bankruptcy and no longer owed. 1328(a).
. • Debt collection cases have claimed an increasing share of the civil docket, making up about 30% of the civil court caseload in the one state where comprehensive data was available. • The dollar value of claims filed annually by debt buyers increased from $6 billion in 1993 to $98 billion in 2013. Filing bankruptcy.
One of the benefits of declaring bankruptcy is that debtcollectors cannot try to collect on debts that were discharged in bankruptcy. In a Chapter13, the debtor’s reorganization plan sets forth how they are going to treat secured debt.
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