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Chapter 7 Bankruptcy and the Bankruptcy Discharge

Richmond, Virginia. The primary reason to file a Chapter 7 bankruptcy is to receive the discharge. A discharge releases individual debtors from personal liability for most debts and prevents the creditors owed those debts from taking any collection actions against the debtor. Generally, excluding cases that are dismissed or converted, individual debtors receive a discharge in more than 99 percent of chapter 7 cases. In most cases, unless a party in interest files a complaint Read more…

By Ronald Page, ago

The Automatic Stay under Chapter 7 Bankruptcy

Richmond, Virginia. Filing a petition under chapter 7 of the bankruptcy code “automatically stays” (stops) most collection actions against the debtor or the debtor’s property. Filing the petition does not stay certain types of actions listed under 11 U.S.C. § 362(b), and the stay may be effective only for a short time in some situations. The stay arises by operation of law and requires no judicial action. As long as the stay is in effect, Read more…

By Ronald Page, ago