For Chapter 7, the non-exempt assets are sold and the proceeds distributed to creditors — after that you are free
of dischargeable debt.
I posted an explanation
of dischargeable debts HERE, and today I'm focusing on Exceptions to Discharge.
For one flat fee our bankruptcy attorneys in Las Vegas will help you keep all of your exempt property and wipe out
all of your dischargeable debts.
Not exact matches
The bankruptcy fully discharges the shortfall as a (now) unsecured
debt, just like all other
debts dischargeable in bankruptcy: credit cards, unsecured lines
of credit, income tax arrears, older student loans, etc..
If you file a Chapter 7 or Chapter 13 bankruptcy, you must list all your creditors, whether or not you intend to repay any
of them and whether or not the
debt is
dischargeable.
Assuming you are an honest but unfortunate debtor, most
of your
debts will likely be
dischargeable.
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.
During the past decades
of irresponsible lending, creditors threw credit around like candy in markets where the credit was
dischargeable in bankruptcy (such as credit cards) and those where it was harder to write off
debts in bankruptcy.
The specific types
of debt and timing
of such
debt that is
dischargeable in a Chapter 7 or Chapter 13 bankruptcy varies from state to state, so you should seek professional help in determined if your
debt can be discharged as a part
of a bankruptcy.
The above list is general information about the types
of debt that are not
dischargeable in a bankruptcy and should not be considered a comprehensive list.
But did you know that student loan
debt is one
of the only forms
of consumer
debt that isn't
dischargeable in bankruptcy?
WHEI&FORE, Debtors prays this Court enters an Order declaring the student loan
debt of the Debtor be be
dischargeable in the bankruptcy case and Defendant ordered to pay $ 2650.00 for wages garnished.
Credit Card
Debt May be
Dischargeable in a Chapter 7 Bankruptcy, but a Court Order for Payment
of Credit Card
Debt to a Former Spouse is Not
You might need the bankruptcy to protect yourself from the deficiency, clean up your credit, and get rid
of other
dischargeable debts.
The other major impact
of this ruling is that license plate renewals can not be withheld over an unpaid 407ETR
debt if you are a discharged debtor because all 407ETR
debts are
dischargeable under a bankruptcy proceeding or consumer proposal.
If you borrow money with the specific intent
of discharging the
debt in bankruptcy instead
of paying it back, the
debt may not be
dischargeable.
This really is not a good plan either I guess because all this time I am making minimal payments that are not even putting a dent in my
debt and although I will soon be relieved
of the
dischargeable credit card
debt, the interest on my loans has just been accumulating and I am sure I will not be able to afford the incredibly high payments once they stay has ended.
Talk to a bankruptcy attorney in your area to determine which
of your
debts are
dischargeable under a Chapter 13 Bankruptcy.
Dischargeable, unsecured
debts which remain after the liquidation
of the assets are generally discharged.
While all
of the
debts listed below are nondischargeable in a Chapter 7, the
debts listed in bold type may be
dischargeable in a Chapter 13 (see § 1328 (a)-RRB-.
However, there are certain types
of debts that are not
dischargeable in a bankruptcy.
(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act; (2) has been insolvent before the commencement
of a case under this title or during the case but before the grant or denial
of a discharge; or (3) has not paid a
debt that is
dischargeable in a case under this title or that was discharged under the Bankruptcy Act.
The list
of non-
dischargeable debts is not exactly coherent, so it is hard to back out consistent logic as to why something is or is not
dischargeable.
And if the debtor does, indeed, bring the action to determine dischargeability, the debtor also has the burden
of proving that the
debt is subject to discharge - the creditor does not have to prove the
debt is not
dischargeable.
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.
Some other types
of debts are
dischargeable in some circumstances, but not others.
If you are the subject
of any
debt collection activity over student loan
debt you should listen very carefully for the
debt collector to say your student loans are not
dischargeable in bankruptcy.
Almost all types
of unsecured
debt are
dischargeable in bankruptcy: common examples include major credit card balances, medical bills, and retail store accounts.
In 1997, a federal panel appointed by President Clinton recommended that Congress reverse all the changes, and once again make student loans
dischargeable in bankruptcy court like other forms
of consumer
debt.
There is nothing worse than taking on a load
of debt that is not
dischargeable in bankruptcy, and having no good way to pay it off.
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.
Regardless
of whether the
debts are public or private, student loan
debt is not
dischargeable in bankruptcy absent a showing
of undue hardship.
Filing bankruptcy should always be a last - resort option for a young person, even if your
debts are fully
dischargeable by bankruptcy as it will damage a young person's credit for a period
of time.
Student
debt is not
dischargeable in bankruptcy like other types
of debt; thus, delinquent or defaulted student loans can stagnate on borrowers» credit reports, creating an ever - increasing pool
of delinquent
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.
Congress has determined that these types
of debts are not
dischargeable for public policy reasons (based either on the nature
of the
debt or the fact that the
debts were incurred due to improper behavior
of the debtor, such as the debtor's drunken driving).
«The court will retain jurisdiction to enforce payment
of debt obligations, in the event a party files bankruptcy, including, but not limited to, the ability to determine the
debt assigned is in the nature
of Maintenance, necessity or support and is therefore non
dischargeable in bankruptcy, and / or making a future spousal support order, regardless
of the spousal support order set forth below under FOURTH: SPOUSAL SUPPORT.»
The attorneys at Susan M. Williams LLC have over 20 years
of experience with bankruptcy and
dischargeable debt.