A bankruptcy petition only applies to those debts already incurred on the date of filing. Accordingly, if you incur new credit card debt or new medical debt after the date you entered bankruptcy, it will not be covered by your petition. The creditor may call, write or take legal action against you to recover that debt, even though you have filed for bankruptcy protection.
A Chapter 7 bankruptcy filing will discharge qualified debt, but has not impact on any liens that attach to property because of a debt. For example, your mortgage or car loan will typically include a lien, which can be exercised according to the terms of the agreement. If you have property that is secured by collateral and you want to keep that collateral, you will need to continue making payments on those debts.
At the office of Howard N. Sobel, we provide personal bankruptcy counsel to men and women throughout the state of New Jersey. Contact our office online or call us at 856-424-6400 to set up a free initial consultation. Evening and weekend appointments can be arranged upon request. We accept all major credit cards.
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