Discharging Debt Through Bankruptcy
Hampton Bankruptcy Attorney Explains Different Types of Debt
So long as a debtor cooperates with the trustee and his/her attorney, a debtor will receive his discharge. There are certain types of debts that are nondischargeable such as recent taxes, court ordered support payments, court fines, and student loans. In rare instances, creditor's may file nondischargeability actions for other types of debts. For example, debts incurred by fraud or as a result of an alcohol related accident can be ruled nondischargeable.
Dischargeable loans include, but are not limited to:
- Old evictions
- Medical bills
- Payday loans
- Credit cards
- Personal loans
Regardless of the chapter of bankruptcy that you file under, any bankruptcy will discharge most or all of the debts that you have. When you file, all liability for non-secured debts will be released from you and you are no longer required to immediately pay them off. A discharge of debts is a permanent court order that will not only relieve you from the stress of debt but also put an immediate stop to creditor collection attempts.
If you file a Chapter 7 bankruptcy, your discharges of debts will occur rather quickly, usually no more than 60 to 90 days after the file date if there are no disputes. Chapter 13 bankruptcies may be a little different, particularly because you are given a payment plan approved by the court to pay off debts, so any discharges of debts will happen after the completion of the payment plan.
Right to Discharge
Although discharging debts can be highly beneficial to the debtor, in most cases, the debtor does not have an absolute right to discharge the debts. Chapter 7 bankruptcy filers can file for a discharge but creditors are able to object the discharge. If a creditor decides to dispute the discharge, you will need to file a complaint, which is the beginning of a lawsuit in the bankruptcy court, known as an adversary proceeding.
After the completion of all payments in Chapter 13 bankruptcy, the debtor may be entitled to file a discharge of all debts as long as long as they were not granted a prior discharge from a previous bankruptcy that they filed.
The Law Office of Philip R. Boardman, P.C. can help!
Discharging debt can be a wonderful thing for individuals who are facing a financial hardship. When you are considering discharging your debts through bankruptcy, it is important that you contact a Hampton bankruptcy attorney from the Law Office of Philip R. Boardman, P.C. right away and retain trusted legal representation.
Our firm is dedicated to the well-being of our clients and ensuring that they receive a favorable outcome for their financial situation as soon as possible. If you have questions or concerns, do not hesitate to contact our firm today and schedule a free case evaluation with a Hampton bankruptcy lawyer at our office.