Can You Dispute Debt During the Bankruptcy Process?

If you’re in a difficult financial situation, bankruptcy may be the best way forward for you. When you are getting ready to declare bankruptcy, however, you might be wondering what will happen to any debts that you want to dispute. Are you still able to dispute them? Here’s what you need to know:

What is a disputed debt?

A disputed debt is a financial obligation that you disagree with. If you study your credit report and find that you are listed as owing money to somebody you have never had any dealings with, for example, you would dispute that debt. A disputed debt may also exist if you feel you are being charged the wrong amount for a financial obligation.

When can you dispute debts during bankruptcy?

In order to dispute a debt, you have to do it in writing. When you file the paperwork to declare bankruptcy, you’ll need to list all of the debts you are choosing to dispute. If you are filing Chapter 7 and the debt is considered dischargeable, or if you don’t have the money to pay the debts in any event, this is likely all you will need to do.

Do I need an attorney to dispute a debt?

It’s best to consult with an experienced bankruptcy attorney before declaring bankruptcy, especially if you’re facing a situation that may be particularly difficult. If you are filing Chapter 13, or if you’re filing Chapter 7 and do have the funds to repay the debt you are disputing, you should talk to an attorney to ensure that your rights are protected in full.

Cutler & Associates, Ltd. has been serving the Chicagoland community for more than three decades, and our legal team has experience handling a wide range of cases related to bankruptcy. If you are looking for guidance with your bankruptcy case in the area of Aurora or Schaumburg, call (847) 961-4572 for a consultation.