Sacramento Bankruptcy Attorney serving Rancho Cordova explains what is “dischargeable debt”
Sacramento Bankruptcy Attorney serving Rancho Cordova further explains what is “dischargeable debt” linking to information posted online by U.S. Bankrutpcy Court
In a prior post, we discussed basic issues in choosing the type of bankruptcy to file. And we provided the full text of the answer, as it appears on the government website at the U.S. Trustee Program/Dept. of Justice.
Today’s post will address What debts can be discharged (written off) and which ones cannot? Links to Bankruptcy Court are provided, as well as links (blue) to our website, which provide further details and answers to your bankruptcy FAQ.
Q: What Is a Bankruptcy Discharge and How Does It Operate?
A: As it appears on the Bankruptcy Information Sheet posted by the U.S. Trustee Program/Dept. of Justice
One of the reasons people file bankruptcy is to get a “discharge.” A discharge is a court order which states that you do not have to pay most of your debts. Some debts cannot be discharged. For example, you cannot discharge debts for–
- most taxes;
- child support;
- alimony;
- most student loans;
- court fines and criminal restitution; and
- personal injury caused by driving drunk or under the influence of drugs.
The discharge only applies to debts that arose before the date you filed. Also, if the judge finds that you received money or property by fraud, that debt may not be discharged.
It is important to list all your property and debts in your bankruptcy schedules. If you do not list a debt, for example, it is possible the debt will not be discharged. The judge can also deny your discharge if you do something dishonest in connection with your bankruptcy case, such as destroy or hide property, falsify records, or lie, or if you disobey a court order.
You can only receive a chapter 7 discharge once every eight years. Other rules may apply if you previously received a discharge in a chapter 13 case. No one can make you pay a debt that has been discharged, but you can voluntarily pay any debt you wish to pay.
In summary, the person filing for bankruptcy should accurately and completely identify and list the debts that are dischargeable in order to fully use the benefits of Chapter 7 or Chapter 13 bankruptcy law.
The information from the Bankruptcy Information Sheet posted by the U.S. Trustee Program/Dept. of Justice also points out:
“IF YOU WANT MORE INFORMATION OR HAVE ANY QUESTIONS ABOUT HOW THE BANKRUPTCY LAWS AFFECT YOU, YOU MAY NEED LEGAL ADVICE. THE TRUSTEE IN YOUR CASE IS NOT RESPONSIBLE FOR GIVING YOU LEGAL ADVICE.”
