Filing a Chapter 7 case is not a criminal offense. A person does not lose any civil or constitutional rights by filing.
Effect of Bankruptcy on Court-Ordered Debt
Although bankruptcy can discharge many types of debt, it's important to note that court-ordered legal debt is not dischargeable. This includes:
- Spousal support
- Criminal fees and restitution
- Traffic tickets and other fines for violating the law
- Personal injury debt related to driving while intoxicated
- Federal, state, and municipal taxes
Effect of Bankruptcy on Debt Collection Attempts
One important legal right is actually gained by filing for bankruptcy: the automatic stay. This prevents debtors from calling, repossessing your property, or garnishing your wages in an attempt to collect the debt.
If a creditor violates the automatic stay, they can be held liable for actual and punitive damages as well as attorney fees.
To learn more or get started on your Chapter 7 bankruptcy case, contact Steffens Law Office today. Our experienced bankruptcy attorney can explain your options and structure your case in a way that maximizes your exempt property.