Chapter 7 Bankruptcy Discharge
Bankruptcy is the best way for both businesses and individuals to get along with difficulties related to debts as well as repay debts. In other words if you decide to file bankruptcy you will automatically become a debtor. At the same time there is also another party of the deal which is called a creditor. It is established in accordance with federal court process. It can be also either individual or business that will owe a debt of the debtor on the date of official bankruptcy establishment.
Bankruptcy discharge is used by legislative federal authorities in order to terminate some debts in case such possibility occurs. On the one hand it is a chance for debtor to get rid of all debts. On the other hand creditor will still get compensation. Sometimes Discharge get take place even without informing a creditor about it. This is not obligatory in some cases. In other words there I no need for the creditor for any legal actions which will enable discharge of debtor.
Chapter 7 Discharge
There are several types of bankruptcy in accordance with existing rules and legislations. Chapter 7 discharge is aimed on elimination of the debt. At the same time it also leads to liquidation of the debtor which also includes taking control over his property which can be sold to the creditor as a part of debt compensation.
If the bankruptcy is discharged, it means that it is a starting point for the debtor. He receives a chance to start his financial life from the very beginning.
The main idea of Chapter 7 is the fact that bankruptcy discharged debtor is no longer obliged to proceed with payments to the creditor covering his debt. He is not responsible for it anymore. At the same time several priorities will be established which will be used to terminate specific assets and proceed with all necessary payments.
In this case debtor will be left without his property. It will be used to cover his debt unless it is to exempt property. However this point is rather controversy when it comes to creditors. For example, if a debtor has little property or no property at all, it means that creditor will get nothing. He will be left without any compensation. The main feature of Chapter 7 is the fact that it makes debtor independent from creditor who is no longer allowed collecting debt in accordance to the law.
Debts That Can’t Be Discharged
There are certain debts that can’t be discharged in accordance with Chapter 7. Such condition comes into force in case a number of specific claims have taken place. They may include fraud claims, claims for malicious injuries and willful, debts which resulted in law violations, educational credits and other types of debts which are described in this chapter. All of them are considered to be nondischargable.
Necessity of Management Financial Course
Completing of financial management course is a must for a debtor in case he wants to be bankruptcy discharged. Otherwise this procedure will not be implemented in his specific case. It means that debtor needs to be certified that he has completed necessary course. It can be uptake with the help of different services which are available on Department of Justice official website. There you can find a full list of financial management course providers.