CAN A CREDITOR PREVENT A DISCHARGE?

Under limited circumstances, a creditor may be able to block a bankruptcy discharge of his debt. For example, if a creditor can prove that he gave a loan in reasonable reliance on a financial statement which was false in important details and given with the intent to deceive him, he may avoid having the debt discharged. If a creditor tries to avoid the discharge for this reason and fails, the bankruptcy judge may order the creditor to pay for the debtor’s attorney fees and costs in defending the action.
These are just examples of problems that may occasionally arise in a bankruptcy proceeding. They are among the many matters which you should discuss in detail with your attorney. Looking for a Utah bankruptcy lawyer?  Click HERE.

WHAT DISCLOSURES MUST A COLLECTION AGENCY PROVIDE A DEBTOR?

Typically, a collection agency begins its efforts with an introductory letter. This letter usually contains the required legal disclosures, which include:
• The amount of the debt,
• The name of the original creditor,
• The period of time in which the debtor may dispute the validity of the debt (thirty days), and
• The obligation of the collection agency to send the debtor verification of the debt if its validity is disputed.

In the original correspondence, the collection agency must also inform the debtor that it is attempting to collect a debt and that any information it gathers from the debtor or other sources will be used for that purpose. If this information is not included in the initial contact letter, the collection agency must provide it within five days.

Most lawyers recommend that debtors request verification of the debt because, in that case, a collection agency may not resume collection efforts until the information is confirmed with the original creditor. The collection agency may not, whether by threatening to destroy the debtor’s credit rating or by threatening to sue if payment is not received immediately, make a statement in the initial correspondence that overshadows the debtor’s right to dispute the debt for thirty days. Visit our website www.dlblaw.com

WHAT IS A BANKUPTCY ADVERSARY PROCEEDING?

An adversary action is a lawsuit filed within a bankruptcy proceeding. There are many reasons for these lawsuits, sometimes even filed by the debtor when a creditor violates the automatic stay. At the Law Office of Douglas L. Barrett, LLC, we aggressively represent debtors in adversary actions as well as other aspects Utah Chapter 7 bankruptcy and Utah Chapter 13 bankruptcy.

CAN MY CREDITOR PREVENT A DISCHARGE?

Under limited circumstances, a creditor may be able to block a bankruptcy discharge of his debt. For example, if a creditor can prove that he gave a loan in reasonable reliance on a financial statement which was false in important details and given with the intent to deceive him, he may avoid having the debt discharged. If a creditor tries to avoid the discharge for this reason and fails, the bankruptcy judge may order the creditor to pay for the debtor’s attorney fees and costs in defending the action.

These are just examples of problems that may occasionally arise in a bankruptcy proceeding. They are among the many matters which you should discuss in detail with your attorney prior to filing for bankruptcy.

Can I change from a Chapter 13 Bankruptcy to a Chapter 7 Bankruptcy or vice versa at a later date?

Yes, it’s called “Motion to Convert” and can be done after you’ve filed for either chapter, also note that the trustee can also request a conversion.
For instance, if your chapter 13 fails, either you or the creditor, may request a conversion to chapter 7. Likewise if the trustee thinks money might be available for unsecured creditors they may make a motion to convert your chapter 7 to a chapter 13. More information on Utah Chapter 13 Bankruptcy can be found at www.utahchapter13.com.

WHAT IS A BANKRUPTCY ESTATE?

A bankruptcy “estate” is defined in Title 11 of the United States Code § 541. It is a very broad definition and includes all legal or equitable interests of the debtor in property, wherever located, as of the commencement of the case. It also includes any property in which the debtor has an ownership interest that is recovered by the trustee if it was merely out of the possession of the debtor.

In certain circumstances, property acquired by the debtor within 180 days after the filing of the case may also be considered part of the bankruptcy “estate”. A Utah attorney should be consulted if there is any question as to whether specific property will be included in the bankruptcy “estate” and the Utah exemptions that may be available to the debtor.

HOW LONG AFTER FILING BANKRUPTCY WILL THE CREDITORS STOP CALLING?

Once a creditor or bill collector becomes aware of a filing for bankruptcy protection, it should immediately stop collection efforts. After you file the bankruptcy petition, the bankruptcy court mails a notice to all the creditors listed in your bankruptcy schedules. This usually takes a couple of weeks.
Creditors will also stop calling if you inform them that you filed the bankruptcy petition and supply them with your case number. In some cases, you or your attorney should contact the creditor immediately upon filing the bankruptcy petition, especially if a law suit is pending. If a creditor continues to use collection tactics once informed of the bankruptcy they may be liable for court sanctions and attorney fees for this conduct.  For more information on Utah Bankruptcy visit us on the web at www.dlblaw.com.