Discharge All Your Debt to Protect Your Future Credit by Disclosing All Debts in Bankruptcy Filing
- February 21, 2013
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One of the most obvious benefits of filing for bankruptcy is having your debts discharged and one of the most common concerns is the effect of bankruptcy on your credit score. When your debts are discharged, you no longer have to repay the debt and your creditors lose the right to seek repayment. In order to successfully discharge your debts, however, you must be extremely cautious when preparing your petition as you will need to satisfy the scrutiny of both the court appointed trustee and judge who are assigned to your case. It is required that you provide information about each creditor and details regarding each debt. Failure to disclose essential information could lead to painful consequences such as the debt not being discharged. For example, a U.S. Bankruptcy judge in Newark recently refused to discharge a person’s $40 million debt when he failed to keep records required by the Bankruptcy code and grossly impaired the ability of the assigned trustee to perform his duties. Filing for bankruptcy certainly hurts your credit score in the short term, but at least it will allow you to start fresh by eliminating your debts. Not filing properly could lead to a bankruptcy filing which leaves you with serious debts a damaged credit report, so it is imperative to disclose accurate information when filing. If you are considering filing for bankruptcy you will be addressing many issues concerning discharging your debts and should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding discharging your debts, Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, foreclosure, consumer debt, credit card debt or debt related matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. We are a Debt Relief Agency. We help people file for bankruptcy relief.