Chapter 7 Bankruptcy

People who are experiencing serious debt problems face many difficult decisions. If they feel that they are unable to pay their creditors and debt, they may face the difficult choice of whether to consider a Chapter 7 or Chapter 13 Bankruptcy. These difficult decisions are often exacerbated by constant, harassing phone calls from debt collectors. The Fair Debt Collection Practices Act (FDCPA) is Intended to Protect Consumers from Abusive Practices by Debt Collectors.

The Bankruptcy Code requires that a Bankruptcy Petition, whether it be a Chapter 7 or Chapter 13 Bankruptcy, include a complete list of all debts owed at the time of the filing of the Bankruptcy Petition. In addition to the requirements of the Code, it is very important that a Petition contain a complete list to provide notice and best protect the Debtor from future collection efforts and to avoid future costs and time associated with addressing the claims of creditors who allege failure of service. A recent Chapter 13 bankruptcy case from Indiana shows why the failure to list a creditor may affect a case.

The changes that were made to the Bankruptcy Law relating to Chapter 7 and 13 consumer bankruptcy cases included significant changes to the treatment of automobile expenses under the Code. As with many aspects of bankruptcy in Chapter 7 and Chapter 13 cases, there has been significant development of the law in bankruptcy cases around the country in this area. This article, which was presented in a bankruptcy law seminar, focuses on whether a chapter 7 or chapter 13 bankruptcy debtor may deduct certain expenses from their income, how courts around the country have treated this issue, and many of the questions that arise for bankruptcy attorneys, bankruptcy trustees, and bankruptcy courts, in addressing these issues.