Clearing Doubts On Discharge

In a discharge, as a debtor, you will be legally free from personal liability in certain kinds of debts. This means you will not have to pay those debts any more. Legally, no company can initiate any form of collections activities in your case. In the case of a valid lien, where property such as a home is collateral, the debtor can claim the property. This is only if the lien has not been invalidated.

How long it takes to get a discharge depends on the chapter under which one has filed for bankruptcy. In case there are no objections, within the stipulated time to the discharge, the courts will automatically grant it at the end of the period. In the case of chapter 7, the procedure roughly take 4-5 months. In the cases of chapters 11, 12 and 13, the discharge is granted within a short period of the individual completing necessary payments. The period is normally around 4 years from the time of filing.  There are certain exceptions that prevail in the case of chapters 7 and 13.

Obtaining a discharge is not all that difficult is there are no objections to it being filed. A copy goes to all involved – all the creditors, the legal representatives of both sides. It is actually a formal discharge, which states that the creditors cannot move forward any collection activities. Doing so would be contempt of court and result in legal action being taken against them.

Not all debts can be discharged. Nineteen basic exemptions are a part of chapter 7, 11 and 12. Chapter 13 has a limited number of exceptions. These categories pertain to areas such as tax debts, alimony and child support, debts from personal injury to other cases, fines and penalties to government institutions and those incurred as a result of criminal activities.

Not all cases of chapter 7 bankruptcy give the debtor a right to a discharge. These can be objected to by any of the people involved. There are several other stipulations put forward by the court in terms of documents to be submitted and the like that can prevent a discharge from happening under chapter 7. Chapters 12 and 13 generally entitle the debtor to a discharge.

If one has secured a discharge under chapter 7 and 11, then they will not be able to get discharge in any category for a period of 8 years following that. This varies for filings under different chapters. There are a few reasons where a discharge can be revoked. These are in cases where the discharge has been obtained through fraudulent means. A court ruling will then come into order. Out of conscience, a debtor can repay his debt despite receiving a discharge.

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About the Author:
Debbie Joneta also writes about Bankruptcy and Credit issues including File Personal Bankruptcy and Filing Bankruptcy Online
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Home Loans After Foreclosure and Bankruptcy

You may think it is impossible to get home loans after foreclosure and/or bankruptcy, and those two big financial pitfalls can indeed be difficult to climb out of. However, it is still possible to get home loans after foreclosure and bankruptcy. Lenders will not loan funds too soon after you file bankruptcy or lose your home to foreclosure, but after a certain amount of time, you will probably be able to get a loan again.

The bankruptcy laws in the United States recently underwent radical changes; in 2005, the new laws went into effect. Those new regulations made it much more difficult for an individual person to file a chapter 7 bankruptcy, and even if it has been twenty or thirty years since you filed bankruptcy, it is nearly impossible to declare bankruptcy a second time.

This fact makes some lenders see you as a viable option for a new loan. They know you will not be able to file bankruptcy again. They know you have little or no debt after the bankruptcy. Therefore, your chances of being able to start fresh and make your payments on time are pretty good.

Plus, no matter how they feel about your ability to repay the loan, they are able to justify charging you higher-than-average interest rates, so you become profitable to them. Getting home loans after foreclosure and bankruptcy is possible, contrary to what most people think. Will you have to pay more for the privilege? You bet! But can it be done? It’s a very real possibility.

In much the same way as a bankruptcy, a foreclosure eliminates your biggest debt: your home mortgage. Therefore, once you have a foreclosure in your history, you also no longer have a big mortgage payment due.

With a bit of time and careful attention to re-establishing your credit history by paying your bills diligently and getting rid of other debt such as credit card debt and car loans, there are lenders who will find it acceptable to offer you a mortgage. Home loans after foreclosure and bankruptcy can be had. Will you have to pay more for the privilege? Yes, certainly. But can it be done? Yes, most likely.

If you have gone through a bankruptcy or foreclosure, it is important to realize that you are not alone. Millions of others have gone through the same situations. You should also not be so embarrassed that you fail to ever try to get a home loan again.

Although it may seem like the most embarrassing thing in the world, lenders understand that these things happen. Much like a doctor does not want you to be embarrassed to say that you have frequent diarrhea or occasional incontinence, your banker does not want you to be embarrassed to admit that you made mistakes in the past.

A doctor needs to know everything; if he or she does, she can most likely help you. A lender is there for you, as well. It is not his job to make judgments; it is his job to find people to whom to lend money. If your lender knows everything, he or she can likely help you, as well. Home loans after foreclosure and bankruptcy are within the realm of possibility for most people.