A Discharge is an order from the court that you do not owe the money any more. Yes, you heard right – An. Order. From. The Court. That. You. Do. Not. Owe. The. Money. Any. More.
All that debt – Credit Cards, Medical Debt, Personal Loans, Car Repossession, Business Debt from a business that did not work out…name the debt, you get a discharge. Even some tax debt. Even if you have been sued. Even if you have liens on your home, you get a discharge and can even get rid of the liens. Yes, yes, we all know about the student loan exception, but even with those you have options.
How does this happen? The creditors let that happen? In the Bankruptcy Court the creditors are no longer in charge.
You can get that court order extinguishing your debt because the Bankruptcy Code says you can. It is like a magic wand.
As with any magic wand, there are rules; you have to recite the spell correctly, so to speak. The rules are complicated and need to be followed with diligence and care. Otherwise, you can trip over yourself and lose the benefit with disastrous results.
Consider a recent case that occurred in the bankruptcy court, let’s call her “E”.
“E” probably qualified for a discharge. But when she filed her court documents, she did not disclose a new business, she did not disclose a pension, and she did not disclose she was married. The business was new and had no value. The pension was totally protected and would not have been affected by the bankruptcy. The fact that she was married was not an automatic disqualifier. The problem was that she did not disclose the business, the pension, and her marriage. She lost her discharge just because she did not disclose information she was required to disclose. Maybe she thought the information did not matter. Maybe she thought the value of the business was too inconsequential. Maybe she was afraid of losing her pension – she would not have. Maybe she just wanted to protect her husband. Or maybe she was just careless. Her reasons did not matter. She lost her discharge because she did not disclose required information. Do it right, or don’t do it at all.
That’s why finding a competent experienced Bankruptcy lawyer is important. With decades of experience in Bankruptcy laws, attorney Susan Gray gives her clients sound, comprehensive advice, and walks with them every step of the way, leading them to a debt free future. Call Susan Gray today on 440 331 3949.