Chapter 7 Bankruptcy Lawyer
For many people, bankruptcy can be a scary word. That is because it indicates that a person or entity cannot and does not have the capacity to pay their debts. But it is not meant to be scary, it is actually meant to be helpful. Bankruptcy is a way of allowing debtors with particularly large debts a fresh start. It is meant to give someone who is having an impossible time at paying off their debt that ability to start over without the pressure or discouragement of having a pre-existing debt.
When a person files for bankruptcy, a bankruptcy discharge is granted as a way of releasing the debtor from personal liability for certain debts. This discharge is important, especially because it also keeps creditors or collections agencies from communicating with the debtors.
What Debts Are Not Released by a Chapter 7 Discharge?
A person who files Chapter 7 bankruptcy is someone who is looking to discharge certain debts by filing a case in a bankruptcy court, who then turns all of their nonexempt property over to a trustee and obeys the orders and rules of the bankruptcy court. When someone files for Chapter 7 bankruptcy, there will be what is called a Chapter 7 discharge. This is a court order that releases the debtor from all of their dischargeable debts and an order that keeps creditor from attempting to collect from the debtor. In short, a discharged debt is a debt that no longer will have to be paid by the debtor. Some debts, though, are not included in the Chapter 7 discharge. They include:
- Debts for certain taxes that were due within the last year years before filing
- Debts for luxury goods and service or cash advances
- Any debts that were made by means of false pretense, fraud or a false financial statement
- Debts that the debtor does not list in their Chapter 7 papers, unless the creditor has notice or knowledge of the case in time to file a claim.
- If a creditor claims that charges were made under the umbrella of fraud, embezzlement or larceny
- Debts for child support, alimony payments or maintenance
- Debts for intentional of malicious injury to a person or another person’s property
- Debts for student loans (unless not discharging the debt would put hardship on the debtor/the debtor’s dependents)
- Debts that were or could have been listed in previous bankruptcy case of the debtor
- Debts for fines or penalties
- For death of personal injuries caused by debtor while unlawfully operating a motor vehicle (for example, driving drunk)
Considering bankruptcy? It is always important that you do your due diligence while considering your options. Filing for bankruptcy is not an easy decision to come to, but with the help of an experienced and reliable chapter 7 bankruptcy lawyer, you can get the help of a professional attorney to come to a decision that it right for you. Don’t hesitate to call today for your complimentary consultation.