Bankruptcy discharge vs closed

why bankruptcy is good for car owners

Bankruptcy discharge vs Bankruptcy closed

Bankruptcy discharge is when the debtor is released from liability to pay his or her debts and no longer required to pay any debts that are discharged, and it also prohibits creditors from coming to collect your debt. Getting a bankruptcy discharge is a big step in a bankruptcy case but it’s not the end of the case.   The case can be held open for a long period of time after a bankruptcy discharge enters.  For example a Bankruptcy Trustee in bankruptcy case may be trying to liquidate assets of the debtor he may require a period of time to find a liquidate the assets of the debtor.  Sometimes he it trying to sale real estate of the debtor and selling it take some time.  He has a reasonable amount of time to make an inquiry into the assets of the debtor and my take several years to actually finish his work in a case.    If he is taking too long to sell an asset you may be able to ask the court to have the case closed without going through with the sale.  Though the main goal of a bankruptcy is the  bankruptcy discharge protection of ones assets is important to most people.  The ability to protect an asset needs to be determined by an experienced bankruptcy lawyer.

Having a bankruptcy closed means that all activity in the main bankruptcy case is completed. All the duties have been completed.   As case can be closed without a bankruptcy discharge.  This occurs for a number of reasons most common we see is when an individual fails to complete the required bankruptcy classes.  A dismissal could be made by the debtor or the court, voluntarily or involuntarily. This is when all of the bankruptcy proceedings are stopped. A closing doesn’t mean that a discharge was entered unless all the activities of the discharge have been completed.

 

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