c. The Rights of those you owe

Even though BANKRUPTCY can be a helpful tool, the people you owe have rights too. If you have given them "security", such as a Mortgage on something, they have to be paid what that item is worth. For example, if you are paying on a home or car, the lender on that item has to be paid. (We will discuss this in more detail)   A Judgment against you also creates a 'security interest' and may give creditors certain rights.   

Your creditors also have the right to equal treatment, which means you can't pick somebody you like and pay them ahead of the others. And you have to be honest about your property and income. When you sign the papers we prepare, you are swearing under oath that the information is true and correct. Lying in your Bankruptcy would be PERJURY and specifically a crime called BANKRUPTCY FRAUD. You would also lose any discharge in that case. So: honesty is the best policy!   Its the only policy!

The businesses or people you owe have limited protection. If you gave a security when you made a loan, they have a right to the items securing the debt or the value of such items. Usually this security is given by a mortgage, when you borrow the money, you list the security items and promise to pay the debt.

Purchase money security is automatic when you buy something on credit, such as a washer, dryer, or other item. Stores that give you a charge card have this security.

BASICS     FRESH START     YOUR RIGHTS     CREDITORS' RIGHTS     WARNING     AFTER BANKRUPTCY     TAXES     LEGAL FEES, COURT COSTS    CHAPTER  7     CHAPTER 13   

NEW LAW- OCTOBER 17, 2005 BANKRUPTCY REFORM ACT

THE U.S. Congress and President Bush have authorized us by law to state that as to our Bankruptcy Work at this Law Firm, WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE.