Filing Chapter 7 Requires Information about your Debts
Aside from disclosing all your debts after filing Chapter 7 bankruptcy action, you must likewise disclose specific information about such debts. These particular requirements are based on the idea that one may find some ways to make bogus debt transactions in order to influence the decision of the court to give your immediate discharge.
For authentic results of the assessment and evaluation, you have to submit the names of your debtors, their respective addresses, the actual amount involved and the dates of payments as much as possible. It is the duty of the bankruptcy court to determine whether these debts are true, existing and definitely adds to your financial burdens.
In some cases, these creditors are also investigated as to the authenticity of the of the debtor-creditor relationship. Well, these proceedings actually make sense vis-à-vis the nature of action filed. To avoid unnecessary delay in filing Chapter 7, you must be ready to present non-spurious documents.
Filing Chapter 7 and Court Issues Stoppage of Collection and Garnishments
Immediately after filing Chapter 7 in the bankruptcy court, the court will certainly order a stay or stoppage of any legal action filed against the debtor in any court. Specifically, collection cases filed in court by the creditor will be ordered stopped by the bankruptcy court who now acquires jurisdiction over the controversy. Actions for garnishments or foreclosure filed in court will also be stopped.
This is to give the bankruptcy court comprehensive facts to review the debtor’s financial conditions since all of these actions are connected with the filing of bankruptcy proceeding by the debtor. The Bankruptcy Court will now have a complete set of details so as to determine whether a judgment of bankruptcy is proper or the dismissal of the case.
Truly, bankruptcy cases are delicate and sensitive. Decisions are always based on facts and reasons and not on mere circumstances. Always remember that filing Chapter 7 in court carries with it relief order from any lawsuit.
Processing your request, Please wait....
