Creditors do have some recourse to collect when a debtor fails to pay a debt. They can attempt to repossess the collateral if the debt is backed by it, such as mortgages and car loans that are backed by houses and cars. The creditor can also take the debtor to court in an attempt to...
the bankruptcy court can discharge certain debts, but not all types of debt. Once a debt has been discharged, the creditor can no longer take action against the debtor, such as attempting to collect the debt
Bankruptcy Rule 2004 is a federal rule that states that "On motion of any party in interest, the court may order the examination of any entity."1It's a relatively rare process, only used when concerns about problems or inconsistencies in a debtor's case are raised. ...
Abad debtis an amount which has been written off by the business as a loss, and categorized as an expense, because the debt owed to the business cannot be collected. This generally occurs when the debtor declares bankruptcy or when the cost of pursuing further action in an attempt of colle...
How Debt Affects Your Mental Health and Ways to Cope: Paying off debt can be a long-term endeavor if you have steep high-interest balances. But it’s important to keep things in perspective and take care of your health. What Is Auto Loan Refinancing?: Understand how refinancing your auto...
Bankruptcy is usually seen as such an extreme situation, mostly associated with a failing business being forced to close down than anything else. But as the amount of debt individuals and families are forced to accrue in order to survive increases, bankruptcy has become more common. A recent st...
A bankruptcy discharge is a court order issued at the end of a Chapter 7 or Chapter 13 bankruptcy proceeding. The order relieves the debtor from any obligation to repay the debts that have been discharged. Key Takeaways A bankruptcy discharge effectively erases certain debts. Creditors can no ...
When a debtor in a bankruptcy case is the party requesting dismissal, it usually cites a lack of assets and a likelihood that no plan for distribution of assets to creditors could be confirmed in the case. Other parties requesting dismissal often argue that the debtor has not made enough prog...
in aChapter 13bankruptcy. In either case, the bankruptcy creditors are left with little or nothing from the debtor. While a bankruptcy allows consumers to wipe out their debt and start fresh, it also tends to destroy a consumers credit background. After a bankruptcy, acreditorwill have ...
A bank account levy occurs when a creditor (a person or business owed a debt) instructs a bank to withdraw money from an account without the account holder's permission. The creditor will apply the funds toward the outstanding debt of the account holder or "debtor." Can a Bank Levy Take...