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.