Getting Through Your Divorce and on With Your Life

Getting Through Your Divorce and on With Your Life

2 Things To Know About Your Creditors When Filing Chapter 7 Bankruptcy

Celina Henry

Filing for Chapter 7 bankruptcy can be a great idea if you really need a fresh start financially. Chapter 7 offers a variety of benefits, including the ability to get your debts discharged. When you file, your lawyer will explain the process to you. This explanation will probably include these two factors relating to your creditors.

An Automatic Stay Will Kick In When You File

One of the huge benefits you will receive as soon as your attorney files your bankruptcy papers is something called an automatic stay. An automatic stay is a legal tool that prohibits creditors from contacting you during bankruptcy proceedings. This tool is not something your lawyer must request; it just automatically occurs as soon as the documents are filed. It may take a few days for this to occur though.

After your lawyer files your paperwork, the bankruptcy court will receive it and must have time to notify your creditors about this. Once they are notified, they will not be allowed to call you, send you letters, or communicate with you in any other way.

The automatic stay does not only stop your creditors from contacting you, but it also offers another huge benefit. An automatic stay forces your creditors to stop all actions against you. If your mortgage lender is in the process of foreclosing on your house, this process will stop. If your car is about to get repossessed, your car lender must stop this process. It can also stop things such as the following:

  • Evictions – If you rent your house, your landlord will not be able to evict you at this time.
  • Utility disconnections – If you are past due on your utility payments, it may put a stop to the utility companies disconnecting your services for a limited amount of time.
  • Wage garnishments – In addition, when you file for bankruptcy, any wage garnishments you are currently experiencing will stop. This can even include IRS wage garnishments for back taxes owed.

An automatic stay is quite helpful when creditors are harassing you for money, and it will probably bring you some relief once you file.

Your Creditors Have The Right To Object

The second thing you should know is that your creditors are required to stop contacting you; however, they also have the right to object to the discharge of the debt you owe. When the bankruptcy trustee notifies your creditors of your bankruptcy filing, creditors will have a certain amount of time to object.

They can do this by attending the meeting of the creditors, which takes place between 21 to 40 days after you file. Another way they can object is by writing a complaint letter to the trustee. There are several common reasons creditors will object, which include:

  • Frivolous spending – If you went shopping and spent $500 on clothing and things you really did not need shortly before you filed, the credit card company might object to discharging this debt.
  • Cash advances – Credit card companies can also object if you took a cash advance from the card within 70 days before you filed.
  • Fraud – If you committed some type of fraud and your creditor suspects or knows about this, the creditor might also decide to object to your discharge of this debt.

If a creditor is successful with this objection, the debt will not be discharged through your bankruptcy. This will not affect any of the other balances you owe to other creditors though.

If you would like to learn more about how bankruptcy could help you through a difficult financial time in your life, contact an attorney, such as those at, that specializes in Chapter 7 bankruptcy.


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Getting Through Your Divorce and on With Your Life

Going through a divorce? I know how you might feel – alone, stressed out, and probably even a little sad due to the loss of the life you have always known. Whether you have children or not, you might even feel a little guilty about the break down of your relationship. But I'm here to tell you that a divorce is not the end of the world. In fact, once you get used to the idea and start to move on with your life, you may find just as much, if not more, happiness than you ever had while you were married! Getting through the proceedings of your divorce in a dignified manner is the first step, and hopefully this website will give you the insight, support, and motivation you need to get through the process as painlessly as possible.