Know Your Rights in Bankruptcy

If you’ve decided that filing for personal bankruptcy is the best way to get your debt issues under control, you’ve already survived the stress of angry creditors banging down your door. In many ways filing for bankruptcy will feel like taking a breath of fresh air, even though it can be complicated and depressing in some ways, too. During this transition away from overwhelming debt, it is essential that you understand your rights and make well-informed decisions going forward.

• You will have the right and obligation to get a certificate of completion from a bankruptcy counseling session and a debt-discharging course to help you understand some of the intricacies involved in filing for bankruptcy.
• The minute you file for bankruptcy, what’s called an automatic stay goes into effect. That means creditors who are attempting to foreclose on you, garnish wages, or repossess property must back off so you can work through the process of bankruptcy.
• You are entitled to attend what’s known as a 341 meeting, where you, creditors, and your bankruptcy trustee discuss your situation, ask questions, and get a fuller understanding of the whole financial picture.
• If the process goes according to plan, much of your debt will be discharged, meaning you will no longer be responsible for it. Things like child-support obligations, some taxes, and student load debt generally stick with you.
  • In a Chapter 13 bankruptcy, a repayment plan will be created that allows you to make more manageable payments over time. At the end of the designated time period—usually 5-7 years—the amount still owed will be completely discharged.
  • In a Chapter 7 bankruptcy, significant amounts of non-exempt property will be sold off in order to make partial payments to creditors, and you’ll be off the hook for the balance.
• If you are filing a Chapter 7 bankruptcy, you may have the right to reaffirm certain debt, meaning you could renegotiate the terms of the loan. It’s possible to propose changes to the interest rate, length of the loan, and even the balance of the loan. Agreeing to reaffirmation would mean you continue to be responsible for that particular debt.
• You have the right to be discriminated against based on your having filed for bankruptcy. That means government entities may not revoke or deny any permits, franchises, charters, or licenses you may currently hold or be applying for based on the that that you’d filed for bankruptcy. You also cannot be denied a job or fired, lose public benefits, be evicted from public housing, have a college transcript withheld, or be denied a driver’s license based on your bankruptcy. Even private employers cannot fire you for this reason.

Protecting Your Rights

The experienced Miami bankruptcy attorneys at The Law office of Julia Kefalinos are committed to seeking the best outcomes for you and always fight to protect your rights. To discuss, schedule a confidential consultation in our Miami office today.

Source:

law.cornell.edu/uscode/text/11/362