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.
- – 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.
- – 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!