What does debt will be reaffirmed pursuant to 11 USC 524 C?

What does debt will be reaffirmed pursuant to 11 USC 524 C?

“What are your obligations if you reaffirm the debt? A reaffirmed debt remains your personal legal obligation. It is not discharged in your bankruptcy case. That means that if you default on your reaffirmed debt after your bankruptcy case is over, your creditor may be able to take your property or your wages.

What is the effect of a discharge?

A discharge is a permanent order that prohibits and prevents creditors from collecting on specific debts. The effect of a discharge, is that it frees the debtor from the debts he or she incurred before the bankruptcy order. Once discharged the debtor is not liable for the discharged obligations.

What does discharge injunction mean?

A discharge injunction is a permanent order that prevents creditors from collecting on those and other pre-petition debts. This includes letters, telephone calls and other means of contact. When a creditor violates the discharge injunction, they can face serious consequences.

What is a co debtor stay?

The Co-Debtor stay only postpones the creditor’s collection actions until after the bankruptcy is over. The Co-Debtor is protected during the life of the bankruptcy, but once the bankruptcy is over, the co-debtor remains liable for the unpaid debt.

What is a reaffirmation agreement in a Chapter 7?

If a debtor signs a reaffirmation agreement, the debtor agrees to pay a debt that otherwise might be discharged in his or her bankruptcy case. There may be other ways to renegotiate payments with creditors without entering into a reaffirmation agreement.

What happens when my Chapter 13 is paid off?

If you pay your Chapter 13 plan off early, you alter the agreed upon terms of your bankruptcy case. Now, you’ll be responsible for paying your creditors all of your original outstanding debt, including the amount that would’ve been discharged.

What does Codebtor mean?

Legal Definition of codebtor : one that shares liability for a debt : a fellow debtor.

Is there a co-debtor stay in Chapter 12?

Chapter 12 also contains a special automatic stay provision that protects co-debtors. Unless the bankruptcy court authorizes otherwise, a creditor may not seek to collect a “consumer debt” from any individual who is liable with the debtor.