How Do Bankruptcy Cases End?
You might remember from high school English literature class that the end of a story or stage play is called the denouement, but that the category of the denouement is further subdivided. If the story is a comedy or otherwise has a happy ending, then the denouement of the story is called the resolution, because the characters resolve the main conflict of the story in a way that is emotionally satisfying to the audience or reader. If the story is a tragedy, then the denouement is properly called the catastrophe. Everything goes wrong for the characters; the protagonist of the story is unable to resolve the conflict the way that he or she wanted, and sometimes one or more main characters die. The audience’s reaction, catharsis, is not exactly relief, but it is still a meaningful experience. The audience feels that something happened and that the story reached a definitive conclusion. Likewise, if you file for bankruptcy protection, the bankruptcy court will not leave you in limbo forever. Your case will eventually reach a denouement, but it might not be everything that you had hoped for. For help getting a successful outcome in your bankruptcy case, contact a Boca Raton chapter 13 bankruptcy lawyer.
Discharge of Debts Is the Best Denouement
The best way that a bankruptcy case can end is by going through the entire process and then the court discharging your debts. In this case, discharge of debts means debt forgiveness; the court declares that you no longer owe the creditors anything else besides what you have already paid. The road to discharge of debts is long and painful, though. You must submit detailed statements to the court about your income, debts, and expenses. The court examines them to make sure that you are being honest in your bankruptcy documents. The court also negotiates with the creditors to determine how much it can pay each one with your available funds. In a chapter 13 case, the court then sets an amount that you must pay to the bankruptcy court each month, and it pays it to your creditors. It calculates the amount as a percentage of your disposable income. After you make payments for three years or five years, depending on your case, the court discharges the remaining balance of your debts, giving your case a satisfying denouement.
Dismissal of Your Case Is the Worst Denouement
In a criminal case, you want the court to dismiss the charges against you. It means that you are no longer suspected of a crime, but you don’t have to negotiate a plea deal or go to trial. In a bankruptcy case, dismissal is a disaster. It means that the court refuses to proceed with the case and to forgive your eligible debts. Your best option is to hire a lawyer and file again as soon as you are eligible, or else settle your debts outside of court.
Work With a Debt Lawyer About Discharging Your Debts
A South Florida debt lawyer can help you get maximum debt relief in chapter 13 bankruptcy. Contact Nowack & Olson, PLLC in Boca Raton, Florida to discuss your case.
Source:
flsb.uscourts.gov/filing-chapter-13-case
