WHO IS A DEBTOR
WHAT ARE THEIR DUTIES?
1
WHO IS A DEBTOR
A debtor is someone who owes money to another individual or entity. The money that the debtor owes is called the debt or obligation; so sometimes he may also be referred to as obligor.
2
HOW SOMEONE BECOMES A DEBTOR?
A debt usually arises from circumstances such as loans, credit extension, taxes, leases, medical bills, and tort claims for damages. Debts are often secured by collateral, like a house or car, unless they are unsecured like credit card debts, advances, taxes, etc.
3
WHAT ARE THE DUTIES?
The duties of a debtor vary subject to the state laws and implications. It is prudent to speak to an expert bankruptcy attorney near you to get a better understanding of debt settlement as it is always individually assessed. In any kind of bankruptcypersonal or corporate, the debtor or the representatives has legal obligations to the creditors and/or to the Bankruptcy Court. A debtor must comply with all statutory requirements as applicable as follows: Reveal all the assets including any property you own or have previously owned. Give written notice to the Trustee of any inheritance of a property or money you receive before or within six months of the filing date; be it as a gift, as divorce alimony, or as life insurance plan benefit. Provide written notice to the Trustee of all the debts repaid within the year prior to the filing date, unless the amount was less than $1,000. Provide written notice to the Trustee of any kind of tax refund of over $2,500 These are some general duties of a debtor, however, if you want more details under different rules and sections, visit:
THE DUTIES BLOG BY NADER & BERNEMAN