1. Which debts are dischargeable in a bankruptcy?
Not all debts can be discharged in a chapter 7 case. Some debts simply can’t be wiped out in a bankruptcy. These debts will remain valid and collectible, just as they were before you filed for bankruptcy. To fully understand exactly what bankruptcy can do for you, it is imperative that you fully understand which of your debts you will still owe after your bankruptcy case is over. This info point can’t be over emphasized! To some debtors, it may not be worth it to file if a certain debt won’t be wiped out.When the bankruptcy court grants you a final discharge, the bankruptcy court won’t specify which of your debts have been discharged. Instead, you will simply receive a non-specific form from the court that explains you have received a discharge. This form is called a discharge order. This set of FAQ’S helps you determine which of your debts are discharged, and which debts may survive.Here’s a quick summary of what specific debts are dischargeable;• Certain kinds of debts are always discharged in bankruptcy, except in rare circumstances.• Some types of debts are never discharged in bankruptcy.• Student loan and income tax debts are not discharged unless you can prove that your situation is an exception to the rule.• Some types of debts are discharged unless the creditor comes to court and successfully objects to the discharge.
2. What should I do if my creditor informs me that their debt is non-dischargeable?
Some of your creditors may claim that the debts you owe them can’t be wiped out in bankruptcy. For example, some leases for computers or other consumer goods often contain clauses stating that if you are unable to complete the lease period, then you can’t wipe out the balance of the debt in a bankruptcy.Don’t fall for this dirty trick! The only debts you can’t discharge in bankruptcy are the ones that are specifically listed in the Bankruptcy Code as non-dischargeable. An experienced bankruptcy lawyer can fully advise you as to which of your debts are dischargeable, and which debts can’t be wiped out.
3. What are the most common debts that are dischargeable in a bankruptcy?
There a certain types of debts will almost always be discharged. This means that you will no longer be responsible to repay them once you receive discharge.a. Credit Card Debts
Without any doubt, the hordes of people who file for bankruptcy try to wipe out credit card debt. For the most part credit card debt is almost always dischargeable. Only in rare cases is a credit card debt declared non-dischargeable. In rare cases credit card debt won’t be discharged if there is there is fraud involved, or if the debtor made luxury purchases immediately prior to the bankruptcy filing.b. Medical BillsContinue Reading