One of the primary benefits of filing a personal bankruptcy is the elimination of debt. In a typical filing, the debtor is granted a discharge order as soon as his or her bankruptcy case has been successfully completed. The court clerk where you filed your case mails a copy of your discharge order to all of your creditors and other interested parties. However, it is important to understand that there are certain debts that are not eligible for discharge.
The majority of consumer debts qualify to be discharged in bankruptcy. This means that when you receive your discharge order, your liability to pay the debts has been cancelled. You are no longer obligated to pay the debt and the creditor or collector is prohibited from taking action to collect it from you. However, below are examples of the types of debts that are excluded under the law from being discharged:
- Child support and spousal support payments
- Certain taxes
- Most student loans
- Debts that were incurred by fraud, embezzlement or larceny
- Debts related to personal injury resulting from willful or malicious conduct
- Debts that were not properly listed or included in your bankruptcy case
- Fines or penalties owed to government entities
- Certain homeowner’s association fees or condominium fees
- Monetary judgments against you for personal injury or wrongful death caused by your intoxication
If you are considering filing a Chapter 7 or Chapter 13 case, it is essential that you confer with a bankruptcy attorney regarding your individual debts. We can review your financial situation and help you understand how a bankruptcy filing will benefit you and how your debt will be impacted, including informing you of any debts that you may remain liable to pay after your case has concluded. To learn more, contact us today to schedule your initial consultation.
You may have heard that there is a lot of paperwork that is required to file for bankruptcy protection. The court requires all debtors to make complete financial disclosures in their pleadings. This means you must list all of your assets, debts, income and expenses. Your bankruptcy attorney at Faro & Crowder, PA, will assist you with preparing all of the necessary pleadings, but it is essential for you to provide us with all of your financial records. Some of the documents we need to see include tax returns, paycheck stubs, and bank statements.
When you file a Chapter 7 case, your initial pleadings filed with the court will include:
- the bankruptcy petition
- a list of all your property and assets
- a list of all your debts
- a “creditor matrix,” which is a list of all your creditors
- a list of your current income and expenses
- a statement of your financial affairs
- a certificate from your lawyer indicating that you have been provided (i) a notice describing the different types of bankruptcy, (ii) notification of the services offered by the credit counseling agencies, and (ii) a statement indicating that anyone who knowingly or fraudulently conceals property or makes a false statement under oath is subject to fine, imprisonment, or both.
All of the above pleadings are together called your “Schedules and Statement of Financial Affairs.” It is important that you closely review your pleadings once they are completed to verify that they are true and correct. Remember, your bankruptcy paperwork is filed with the court under the penalty of perjury.
Contact Faro & Crowder, PA for a free initial bankruptcy consultation
If you are considering filing a Chapter 7 bankruptcy case, let us help. We can assist you with preparing your pleadings and walk you through your case step by step. Contact the skilled attorneys at Faro & Crowder to schedule a free consultation.
Faro & Crowder, PA
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935