Generally, when you folder for personal bankruptcy, it Testament one embrace pre-bankruptcy interrogate debts. There are two types of personal bankruptcy: Episode 7 and Phase 13. A Event 7 bankruptcy is a liquidation big picture that Testament sell off your assets to salary creditors. A Phase 13 bankruptcy course of action is allot for a three- to five-year path period during which a debtor makes biweekly payments to a trustee, and the trustee then makes payments to creditors. Both types of bankruptcy Testament encompass pre-petition bankruptcy Obligation, on the contrary matchless some types of post-petition Obligation can be added to a bankruptcy disposition.
Instructions
1. Another look your bankruptcy aim to eye what debts are covered by your bankruptcy. Provided you have hired an attorney, he or she can give you a rundown of your bankruptcy plan and what debts are covered. To do so, you will need permission from the bankruptcy court. Your lawyer can help you create a motion to incur debt to submit to your assigned bankruptcy trustee who will in turn make a recommendation to the bankruptcy court. Never incur post-petition bankruptcy debt while still in bankruptcy without court permission.3. Those payments must continue to be made even after your other debts have been discharged.
2. Receive court permission to incur additional debt. Throughout a bankruptcy plan, you may have a need to take out additional loans or incur additional debt. All unsecured debt should be included. This includes all debt not secured by collateral, such as credit card debt. Secured debt, like your mortgage (your house is collateral), will also be paid by your bankruptcy plan, but this debt will not be discharged ultimate of your bankruptcy.
Complete your bankruptcy plan. In order To possess debts discharged persist of your bankruptcy, you will need an order of discharge from the bankruptcy court. This means that your case has reached a successful end and all terms of your bankruptcy plan have been completed. Make sure to review with your attorney what pre- and post-petition bankruptcy debt is discharged by your bankruptcy plan.
