The following article will cover:
- The debt threshold for chapter 7 bankruptcy, and whether you can have too much debt to qualify.
- How filing for chapter 7 bankruptcy can help stop wage garnishment and creditor harassment.
- The responsibilities of a bankruptcy trustee, and the creditor’s ability to object to a debtor’s discharge.
Could I Have Too Much Debt To Qualify For Chapter 7 Bankruptcy?
You cannot have too much debt to qualify for Chapter 7 bankruptcy. There is no debt threshold that would prevent you from filing. However, if your debt is less than $10,000, you may be asked why you are filing, as it might not seem like a significant amount to some. Nonetheless, everyone’s circumstances are different, and there is no limit on debt for filing Chapter 7 bankruptcy.
Will Chapter 7 Bankruptcy Stop Wage Garnishment?
Yes, Chapter 7 bankruptcy will stop wage garnishment. Once your case is filed, it is recommended that you:
- File the necessary documents with the county court where the garnishment is taking place.
- Notify the attorney handling the garnishment.
- Inform your payroll department.
By taking these actions, the garnishment should be lifted shortly after filing.
Will Chapter 7 Bankruptcy Stop Creditor Harassment Once The Bankruptcy Petition Is Filed?
If you’re being harassed by creditors, you understand how uncomfortable and frustrating this experience can be. For many people in debt, creditor harassment is a huge point of anxiety.
In theory, creditor harassment should stop immediately after they receive notice of your bankruptcy filing. However, it may not always be a smooth process.
Some creditors might continue to contact you due to outdated records or non-compliance with the law. If the harassment persists, inform your attorney, who will ensure it stops and hold the responsible parties accountable.
What Is A Bankruptcy Trustee?
A bankruptcy trustee is a court-appointed individual who represents the interests of creditors in bankruptcy cases. Their responsibilities include:
- Reviewing documentation such as bank statements, pay stubs, tax returns, and asset information.
- Verifying your identity.
- Identifying any assets they can pursue to recover funds for the bankruptcy estate, benefiting creditors.
Can A Creditor Object To A Debtor’s Discharge In Chapter 7 Bankruptcy?
Yes, a creditor can object to a debtor’s discharge in Chapter 7 bankruptcy. They receive a “341 meeting of creditors” notice, informing them of the case filing and providing relevant deadlines. While creditors do not commonly object to discharges, they have the opportunity to do so in specific situations.
For more information on Know About Filing A Chapter 7 Bankruptcy, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (407) 305-5599 today.