Discharge usually occurs at the completion of a personal bankruptcy. In Chapter 7, the discharge is granted about 60 days after the creditors meeting. In Chapter 13, the discharge of debt happens at the end of the payment plan, which is 3 - 5 years depending on the circumstances. As one can see, there is time to get in trouble between filing and discharge.
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Some of the documents requested are past tax returns and bank statements. If you own a house, the trustee usually wants to see a mortgage, deed, a recent statement showing the mortgage balance. After reviewing the information in the document provided by a debtor, a trustee may have questions or request additional documents that need to be answered.
Debtors must also complete a second credit counseling course; personal financial management. And Chapter 13 debtors must make monthly payments on their plans until completion. Failure to do any of these things can result in a case being dismissed. The filing of a bankruptcy case does not signal the time to coast and stop working with your attorney.
It is important to understand that secured debts, debts where a person has used property as collateral like a house or car, are not generally discharged in bankruptcy. Taxes and government debts may or may not be discharged either. Also, if a person is seeking a discharge of student loans, additional steps within the bankruptcy case need to be taken and student loans are nearly non-dischargeable as well.
If you want assistance, legal representation, or just want to know more about Mark Medvesky or Medvesky Law Office, LLC, check out our website at www.medveskylaw.com.
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