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Some of the most common types of unsecured creditors include credit card companies, utilities, landlords, hospitals and doctor's offices, and lenders that issue personal or student loans (though education loans carry a special exception that prevents them from being discharged).
However, each of your creditors must file a proof of claim (described below) within a certain time to prove how much you owe. If a creditor fails to do so, then the bankruptcy trustee will not make any payments to that creditor. In some cases, lack of a proof of claim may benefit you.
What Will Happen to My Home and Car If I File Bankruptcy in Oregon? In most cases you will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt.
Does the debtor have the right to a discharge or can creditors object to the discharge? In chapter 7 cases, the debtor does not have an absolute right to a discharge. An objection to the debtor's discharge may be filed by a creditor, by the trustee in the case, or by the U.S. trustee.
A credit card issuer can object to a bankruptcy discharge of the debt in question by asserting that the information on the credit application was false. The debtor may have overstated income and/or understated expenses. A creditor can also challenge a discharge based on a fraudulent statement of a source of income.
Creditors rarely show up. Credit card and medical debt collectors basically never appear. In 1% to 3% of the hearings, a bank representative who loaned you money (e.g., for a business or a car), a former business partner, or an ex-spouse may attend the hearing.
Instead, they process the bankruptcy notice along with the thousands of others they get each year without an ounce of emotion about it. So if you are sitting at home and wondering what creditors think when you file bankruptcy, they don't think much about it.
Miss just one and your case may be dismissed. The good news is that if you ? or the attorney you hire ? gets the paperwork right and the case moves through the court to the point where debt discharge is determined, the U.S. Bankruptcy Courts says that 99% of Chapter 7 cases succeed.