Filing bankruptcy under Chapter 7 does not mean you will lose your home and your car. The law has a series of exemptions that allow people to keep the assets necessary for their existence. Hiring the right bankruptcy law firms will help things progress faster.

How can people find out what debts were liquidated?

The liquidation order sent by the court will contain the general declaration of the categories of liquidated debts. The individual debts settled will not be listed in the settlement order. Instead, the liquidation order will establish that the debts have been liquidated unless there is a particular order denying the settlement of a specific debt. If there is no order, the debtor can assume that it received the agreement of all debts included in the categories indicated in the settlement order.

How do filers get their bankruptcy removed from their credit report?

Generally, the court does not control the actions of the credit reporting agencies. Debtors should contact credit reporting agencies directly to discuss the duration of the bankruptcy on their credit reports. In case the debtor has doubts about this or has problems obtaining help from the credit agencies, he or she should contact the Federal Trade Commission.

Some general rules to consider

Unfair and involuntary bankruptcy cases are heard if one of the parties improperly requests an involuntary bankruptcy petition against the debtor. If this happens, the court may issue a prohibition order to the credit reporting agencies to report the filer’s bankruptcy. There are ways around this, for the most part, but all of them involve hiring a lawyer.

A voluntary case is another option. Fair Credit Reporting Acts deal with the laws that control how credit reporting agencies operate. The law stipulates that agencies who report credit scores and delinquencies cannot report bankruptcy cases after a certain period from when the case was filed (10 years). Generally, information about bad credit is eliminated after seven years.

The largest credit reporting agencies are a part of a branch called “Associated Credit Bureaus.” The court system is aware that the policy of this agency is to eliminate successful cases of Chapter 13 after seven years (7) to promote the debtors to present cases under this chapter.