Colorado Bankruptcy Lawyers - "What is a discharge in bankruptcy?"

Under 11 U.S.C. 727, a discharge is a release of liability in favor of the debtor which applies only to specific debts appearing within schedules filed with the court. Debts that bankruptcy lawyers must list within schedules include common consumer obligations: loans, notes, credit cards, accounts payable, and contractual obligations. A discharge terminates obligations. No further payment are required. An order of the court granting discharge acts as a federal injunction directed to each listed creditor, and their bankruptcy lawyers, prohibiting further action to collect the debt, claiming the debt, or representing to any person or organization that the debt remains valid. Lawsuits are banned. All actions for collection are prohibited, including all phone calls requesting payments of any kind.

Colorado Bankruptcy Lawyers - Collateral

Be aware that secured debt are not fully discharged. Creditors and their bankruptcy lawyers  retain rights to recover collateral, up to the value of the security interest, but may not collect any amount owed beyond the lien value for discharge debts. In the most basic sense, a discharge eliminates unsecured obligations, including the unsecured portion of debts secured by collateral. Debtors and their bankruptcy lawyers may selectively choose to repay any obligation after discharge. Post discharge payments are voluntary. A post-discharge payment of a portion of a discharged debt, if made, does not act as a reaffirmation of the debt and no further payments are required.

For maximum benefit, most debtors interview several bankruptcy lawyers before committing to any course of action. Interviewing bankruptcy lawyers requires a degree of expertise. Federal laws, state laws, and local rules combine to form the practice standard used by Colorado bankruptcy lawyers and courts. These laws evolve continually with new statutory amendments and case decisions. The most successful debtors compare the opinions of several bankruptcy lawyers, and with targeted questions, discover the most beneficial path to pursue.

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