Chapter 7 Bankruptcy Basics

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• FAF Trustees Appoint Joyce Joseph to the Financial Accounting Standards Board [11/15/22]
• Voters’ Views on November’s Propositions
• North County School News, Dec. 18: La Costa Canyon holiday concert, MiraCosta College poinsettia sale
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• Column: Remembering Ofie Escobedo, patroness of Carlsbad Barrio

As a general rule, the discharge releases the debtor from all debts provided for by the plan or disallowed, with the exception of certain debts referenced in 11 U.S.C. § 1328. To the extent that they are not fully paid under the chapter 13 plan, the debtor will still be responsible for these debts after the bankruptcy case has concluded. A discharge releases individual debtors from personal liability for most debts and prevents the creditors owed those debts from taking any collection actions against the debtor. Because a chapter 7 discharge is subject to many exceptions, debtors should consult competent legal counsel before filing to discuss the scope of the discharge. Generally, excluding cases that are dismissed or converted, individual debtors receive a discharge in more than 99 percent of chapter 7 cases. A chapter 13 bankruptcy is also called a wage earner's plan.

Benefits for correspondence courses under certain conditions are available to spouses only. Beneficiaries without high-school degrees can pursue secondary schooling, and those with a deficiency in a subject may receive tutorial assistance if enrolled half-time or more. Surviving spouses lose eligibility if they remarry before age 57 or are living with another person who has been recognized publicly as their spouse.

FAF Trustees Appoint Joyce Joseph to the Financial Accounting Standards Board [11/15/22]

With chapter 13, most or all of your creditors are lumped together into one large pool. You make monthly payments to a lawyer — called a trustee — assigned to your case. The trustee distributes your payment to the creditors. Chapter 7 and chapter 13 bankruptcy are common individual bankruptcies you can file to get some relief if you’re struggling to repay debt.

It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. In no case may a plan provide for payments over a period longer than five years.

Voters’ Views on November’s Propositions

Like with any damage to your creditworthiness, it's possible to rebuild your credit with some focus and patience—along with using the debt relief provided by the bankruptcy to get back on track financially. Although the trustee doesn’t sell your property in Chapter 13 bankruptcy, you must repay creditors an amount equal to the value of your nonexempt property. How much you pay depends on your income, expenses and the type of debt you owe.

Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under chapter 7 may result in the loss of property. Auto loans let you borrow the money you need to purchase a car.

North County School News, Dec. 18: La Costa Canyon holiday concert, MiraCosta College poinsettia sale

You’ll be required to pass a Chapter 7 means test to prove that you can’t afford to pay your debts. A Ducey spokesperson said the federal government was now doing similar work. VA provides vocational training, rehabilitation services, and employment assistance to help these children prepare for and attain suitable employment. To qualify, an applicant must be a child receiving a VA monthly allowance for spina bifida or another covered birth defect and for whom VA has determined that achievement of a vocational goal is reasonably feasible. A child may not begin vocational training before his/her 18th birthday or the date he/she completes secondary schooling, whichever comes first.

In some instances, the IRS also offers monthlypayment plansfor taxpayers who can’t pay their tax obligations all at once. When a debtor receives a discharge order, they are no longer legally required to pay the debts specified in the order. What's more, any creditor listed on the discharge order cannot legally undertake any type of collection activity against the debtor once the discharge order is in force.

Fewer than half across regions and demographic groups approve of Congress. In October 2018 before the last midterm election, a similar 53 percent of likely voters were extremely or very enthusiastic about voting for Congress (25% extremely, 28% very, 28% somewhat, 10% not too, 8% not at all). Today, Democrats and Republicans have about equal levels of enthusiasm, while independents are much less likely to be extremely or very enthusiastic. Half or more across regions are at least very enthusiastic, with the exceptions of likely voters in Los Angeles (44%) and the San Francisco Bay Area (43%).

During this time the law forbids creditors from starting or continuing collection efforts. Negotiating with your creditors without involving the courts can sometimes work to the benefit of both sides. Rather than risk receiving nothing, a creditor might agree to a repayment schedule that reduces your debt or spreads your payments over a longer period of time. If you are unable to make your mortgage payments, it's worth calling yourloan servicerto find out what options you might have, short of filing for bankruptcy. Those could includeforbearance, which will allow you to stop making payments for a specified time, or a repayment plan designed to stretch smaller monthly payments over a longer period. Individuals who make too much money to qualify for Chapter 7 bankruptcy may file under Chapter 13, also known as a wage earner's plan.

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The content created by our editorial staff is objective, factual, and not influenced by our advertisers. Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. The attorney must also certify that the debtor was fully informed and voluntarily made the agreement and that reaffirmation of the debt will not create an undue hardship for the debtor or the debtor's dependants. The Bankruptcy Code requires a reaffirmation hearing if the debtor has not been represented by an attorney during the negotiating of the agreement, or if the court disapproves the reaffirmation agreement. The debtor may repay any debt voluntarily, however, whether or not a reaffirmation agreement exists. ☉Credit score calculated based on FICO® Score 8 model.

Forty-nine percent are optimistic, while 46 percent are pessimistic. Optimism has been similar in more recent years, but has decreased 7 points since we first asked this question in September 2017 (56%). In September 2020, just before the 2020 general election, Californians were also divided (47% optimistic, 49% pessimistic). Fewer than half of likely voters say the outcome of each of these state propositions is very important to them. Today, 21 percent of likely voters say the outcome of Prop 26 is very important, 31 percent say the outcome of Prop 27 is very important, and 42 percent say the outcome of Prop 30 is very important. The shares saying the outcomes are very important to them have remained similar to a month ago for Prop 27 (29%) and Prop 30 (42%).