Sentences with phrase «dischargeable debt»
"Dischargeable debt" refers to a type of debt that can be legally eliminated or forgiven through a formal process, such as bankruptcy. This means that the person who owes the debt is no longer required to pay it back. Full definition
I posted an explanation of dischargeable debts HERE, and today I'm focusing on Exceptions to Discharge.
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Dischargeable debts include utility bills, balances on credit cards, medical and hospital bills, and personal loans.
If you're going to end up robbing Peter to pay Paul, I don't see the point of trading an unsecured, dischargeable debt for another debt and a non-dischargeable IRS obligation.
However, when it comes to a consumer proposal or personal bankruptcy, taxes are generally dischargeable debts (ie they go away upon completion of the procedure) just like your credit cards, bank loans, or other unsecured debts.
Remember, student loans aren't dischargeable debt.
Dischargeable debts do not disappear.
In effect, you are taking fully exempt (protected) funds and applying it towards dischargeable debt.
You might need the bankruptcy to protect yourself from the deficiency, clean up your credit, and get rid of other dischargeable debts.
Chapter 7 bankruptcy completely eliminates dischargeable debt forever.
So if you have legitimately dischargeable debts, like medical expenses or a pile of overdue bills in collections, be sure to list them or you'll miss the bankruptcy boat.
As to student loans and tax debt, please do not confuse unsecured debt with dischargeable debt.
In these cases, the Court may also deny your Chapter 7 petition in whole, meaning that you can not be discharged from regularly dischargeable debts.
For Chapter 7, the non-exempt assets are sold and the proceeds distributed to creditors — after that you are free of dischargeable debt.
While the CRA does have significant collection powers compared to other creditors when it comes to a consumer proposal or personal bankruptcy, taxes are generally dischargeable debts (i.e. they go away upon completion of the procedure) just like your credit card debts, bank loans, or other unsecured debts.
This means that all dischargeable debts are discharged and creditors may not attempt to collect on those debts.
A PA also may not have included a previously received LSC LRAP loan in any bankruptcy filing as a dischargeable debt.
Dischargeable debts include the following:
Is the dischargeable debt discharged immediately?
If there are no objections to the bankruptcy the court will issue an order saying that your unsecured, dischargeable debts are officially discharged.
The law prohibits government units and private employers from discriminating against you because you filed a bankruptcy petition or because you failed to pay a dischargeable debt.
The debtor then receives a discharge of all dischargeable debts.
If the debt is a dischargeable debt then you will not have to pay it.
Dischargeable debts, nondischargeable debts — what about avoiding bankruptcy altogether?
A Chapter 7 is a complete release of all dischargeable debt while a Chapter 13 is a repayment plan approved by a court and monitored by an appointed trustee.
You must surrender the vehicle prior to filing a consumer proposal for any shortfall to be included as a dischargeable debt in your proposal.
If you filed a Chapter 13, your payment plan is confirmed after the meeting of the creditors and you make your payments for the duration of your payment plan, after which, the remaining balances on your dischargeable debt is discharged.
If you are married, do not ever get divorced, and have no seperate property, you can get a Bankruptcy Discharge of all your dischargeable debts, if only your spouse files for Bankruptcy.
Credit cards and medical bills are the two most common types of unsecured and dischargeable debts; they are also two of the most common reasons individuals fall into financial trouble.
One of the primary goals of bankruptcy is obtaining a discharge of all of your dischargeable debts.
The attorneys at Susan M. Williams LLC have over 20 years of experience with bankruptcy and dischargeable debt.
It releases you from personal liability for any dischargeable debts.
At the end of the repayment period, if all payments have been made according to the plan, remaining unsecured, dischargeable debt may be discharged.