Can Anyone Stop my Personal Bankruptcy?

 Posted on December 23, 2013 in Chapter 7

Filing for bankruptcy is a great financial tool for people who have accrued too much debt to handle responsibly.  Maybe you lost your job and do not want to lose your house.  There are several kinds of bankruptcy for which a person or a business can file.  A chapter 7 can eliminate credit card balances, unpaid medical bills, tax penalties and other unsecured debt.  On the other hand, a chapter 13 allows you to repay a portion of your debts if you have the means to do so and have the rest forgiven.

While this seems beneficial to anyone with unmanageable debts, there are ways that your bankruptcy might not discharge your debts.  During a required meeting with your creditors, objections may be raised as to prevent you from eliminating some or all of your debts.

There are two kinds of objections that creditors can typically file against your bankruptcy discharge.  The first kind is an objection to the discharge of a specific debt. This kind of objection will not change the ruling about your other debts but will only affect the ability to discharge a specific debt.

The other type of objection that can be raised is regarding all of your debts.  This kind of objection is used if there is some sort of fraud suspected in the bankruptcy filing.  Typical types of fraud during bankruptcy include providing false information on your petition for bankruptcy, transferring property to someone before filing, committing perjury during the bankruptcy hearing among other mistakes.  The penalties can be severe for committing bankruptcy fraud.  You can be responsible for all of your debts, be unable to include these debts in other bankruptcies and even be sentenced to prison.

As much as bankruptcy is a tool to get a fresh start financially, there are also things to avoid.  Committing fraud is a serious offense so be sure to provide all debts and financial information to your bankruptcy attorney.  Contact an experienced bankruptcy attorney in San Antonio today to begin your petition to file for bankruptcy.