Thousands of people look to bankruptcy each year to help get rid of their debts. What many people don’t know is what debts can actually be discharged by certain chapters of bankruptcy, and whether the chapter they are currently pursuing is what’s right for them. Below, you’ll find a guide to which debts can and cannot be discharged by Chapters 7 and 13 to help ensure you find the right solution.
In most cases, Chapter 7 filers will gain a discharge immediately after their case is complete. The discharge usually goes through 60 days after the meeting of the creditors, which tends to be 4 months after initially filing.
Chapter 7 also allows debtors to get rid of large amounts of several types of debts, making it a very popular form of bankruptcy. The debts most commonly discharged under Chapter 7 bankruptcies include:
- Credit card debt
- Medical bills
- Personal loans
- Promissory notes
- Obligations under leases and contracts
- Lawsuit judgments against you
After completing a Chapter 13 bankruptcy, debtors can be issued a partial or full discharge of some of their debts. If the debtor did not find a satisfactory amount of financial relief, their case can be converted into a Chapter 7 case to gain further relief.
Certain debts are only available to those that file under Chapter 13, and are unavailable to those filing under Chapter 7. These include:
- Martial debts from divorce (excluding alimony/child support)
- Court fees
- HOA, condo, and co-op fees
- Debts from retirement plan loans
- Debts unable to be discharged by a previous bankruptcy
There are certain debts that can never be discharged by bankruptcy, including:
- Child support
- Criminal fines/penalties/restitution
- Certain taxes
- Personal injury debts stemming from driving under the influence
Debts from student loans tend to be considered non-dischargeable. However, if you can prove in court that you would reasonably not be able to pay off the loans, you may get a discharge.
Creditors also have a chance to declare certain debts non-dischargeable, including:
- Debts from fraud
- Debts gained from willfully malicious acts
- Debts incurred from embezzlement, larceny, and breach of fiduciary duty
- Debts or creditors that you did not include in your original bankruptcy papers
Contact Our Connecticut Bankruptcy Team Today
We understand that filing for bankruptcy can be difficult and confusing. Here at Law Offices of Jennifer LaRese, LLC, we are committed to simplifying the process to help you find the financial freedom you have been looking for.
If you have any questions about how we can help tailor your bankruptcy case for your needs, contact us today through our website, or give us a call at (203) 774-3332!