What is omitted debt?

What is omitted debt?

The creditor receives no distributions or payments from the bankruptcy plan of reorganization. More importantly, the debt owed to the creditor is not discharged and survives the bankruptcy (unless the creditor had actual notice or knowledge of the bankruptcy proceeding, which can be difficult to prove).

What is the waiting period for a cash out transaction?

Fannie Mae currently requires a minimum of six months to elapse between the time a borrower purchases a home and subsequently applies for a cash-out refinance.

What is considered non-mortgage debt?

Minimum credit card payments. Auto, student or personal loan payments. Monthly alimony or child support payments. Any other debt payments that show on your credit report.

What happens if you omit a creditor in a bankruptcy?

Knowing omission of creditor risks discharge. Sometimes, a debtor intentionally skips a creditor in the schedules. Reasons (really, excuses) for omitting a creditor boil down to these: the creditor knows “stuff” the debtor doesn’t want the bankruptcy system to know.

What are the rights of a debtor in bankruptcy?

Be heard by the court in matters concerning the debtor’s plan (in chapters 11, 12, and 13), the liquidation of the debtor’s non exempt assets, and payments from the assets of the estate. Challenge an individual debtor’s right to a discharge or to discharge the creditor’s particular debt.

What happens if I file a Chapter 7 liquidation bankruptcy?

If you filed a Chapter 7 liquidation bankruptcy, the affect on the debt depends on whether your case is considered an “asset case” or a “no asset case”. In bankruptcy terminology, a “no asset case” means that there are no assets that will be liquidated and administered by the bankruptcy trustee .

What happens if I accidentally leave a debt out of my bankruptcy?

Or, if you realize that a creditor has been missed, it is possible to add creditors to your case, as long as the debt existed as of the time your bankruptcy case was filed. Adding creditors involves filing extra paperwork with the court, along with filing fee, and usually results in additional attorney fees and costs.

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