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What happens after you file bankruptcy?
When you file for a bankruptcy, you are protected by what is called, “automatic stay”. An automatic stay immediately stops any lawsuits filed against you by collection agency. Automatic stay is designed to help and give debtor protection. For instance, if you are behind on a paying for your water, electric, gas, telephone service, and other utility bills, automatic stay will prevent disconnection for at least another twenty days. In most situations, bankruptcy will probably discharge your past due debts for utility services.
What debts can be discharged?
Under the Bankruptcy Code, there are six types of bankruptcy: Chapter 7, Chapter 9, Chapter 11, Chapter 12, Chapter 13, and Chapter 13. The scope of discharge debt is different in each chapter.
In most cases, most unsecured debts like utility bills will be dischargeable. Secured debts, on the other hand, will usually survive bankruptcy.
Chapter 7 |
Chapter 13 |
| Non dischargeable in this chapter are family support, recent taxes, criminal fines, debt inucured by fraud. Eveything else is dischargeable. |
Non dischargeable in this chaptera are family support, old taxes, student loans, and drunk driving fines. |
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