The Allmand Law Firm, PLLC Difference

Unlike most bankruptcy firms in the Dallas / Fort-Worth area, Allmand Law Firm, PLLC spends the time to understand the complete financial picture for every one of our clients. We provide resources, tools and advice to address the unique needs of North Texans.

What You Should Know about Discharging Debt in Bankruptcy

Posted By admin || 17-Dec-2012

Discharging Debt

Discharging Debt in Bankruptcy

Whether you file Chapter 7 or Chapter 13 bankruptcy , the general goal is to regain control of your finances and get out of debt.  Chapter 7 bankruptcy is known for discharging or eliminating debt while Chapter 13 helps reorganize debt with a payment schedule.  Certain debts in Chapter 13 may still continue to be paid by the debtor if it doesn't qualify for a discharge.

When a debt is discharged in bankruptcy the debtor is no longer responsible for repaying it back to the creditor. There are certain debts that qualify for discharge including medical bills , credit card debt , personal loans, lawsuit judgments and fees related to lease and contract obligations.  While such debts can be discharged in Chapter 7 or Chapter 13, there are certain types of debt that obtain discharge though Chapter 13 alone.

Debts That are Not Dischargeable in Chapter 7 but in Chapter 13

Certain debts are not dischargeable in Chapter 7 but in Chapter 13, these may include court fees, HOA fees, debt related to retirement plan loans, marital debt outside of a divorce agreement and other debt not dischargeable in Chapter 7 bankruptcy.

Certain types of tax debt cannot be discharged such as alimony, child support, debt incurred related to a person's death or injury during intoxication also restitution including penalties and fines for breaking the law.  Student loan debt and regular income tax debt may be discharged under strict circumstances; these debts are rarely discharged but it is possible. There are a few circumstances in which a debt may not get discharged. Examples may include if the debt stems from fraud, malicious acts, larceny, embezzlement, or if a debt is not listed in your bankruptcy petition.


Categories: Bankruptcy
Blog Home