Dischargeable Debt in Bankruptcy

One of the main goals of bankruptcy is to obtain a discharge.  The discharge is a Court Order stating you are no longer liable for your dischargeable (eliminated) debt.  In order to be dischargeable, the debt must be incurred prior to the filing of the case.

Debts discharged in bankuptcy - dequindre cut

Dischargeable Debts:

  • –          Credit card charges
  • –          Medical bills
  • –          Collection accounts
  • –          Auto loan deficiencies
  • –          Mortgage deficiencies
  • –          Business debt
  • –          Utility bills
  • –          Drivers Responsibility Fees
  • –          Auto Accident Claims (unless under the influence)
  • –          Civil Court Judgments (unless based on Fraud)
  • –          Unpaid taxes (if qualifications met)
  • –          Unemployment overpayment (unless Fraudulent)

While the majority of debts can be discharged in a Chapter 7 or Chapter 13 bankruptcy, the following list includes some debts which are not dischargeable.

Non-Dischargeable Debts:

  • –          Taxes
  • –          Domestic Support Obligations (Child Support and Spousal Support)
  • –          Criminal Fines or Penalties
  • –          Student Loans (with a few rare exceptions)
  • –          Personal Injury caused by the debtor while intoxicated
  • –          Debts owed to retirement plans (401(k) loans)

If there was any fraud, misconduct or abuse related to these commonly dischargeable debts it may make them non-dischargeable.  Contact Detroit Lawyers today at 248.237.7979 to make sure you get the full benefit of a bankruptcy filing!