What can I get rid of in a Bankruptcy….and some that won’t

Bankruptcy provides a fresh start to individuals and families who are faced with difficult financial strains due to being laid of work, unforeseen medical procedures, overwhelming credit card, etc.. But, what does it mean by “fresh start”? When a person files for bankruptcy, the purpose of that bankruptcy is to receive a discharge. A discharge means that the person’s personal liability to their debts disappear. In another words, once you have complete your bankruptcy and the Court signs and files your discharge, your creditors cannot call you, commence a lawsuit against, or do anything against you for those particular debts included in your bankruptcy discharge.
However, there are debts that are commonly non-dischargeable under the Bankruptcy Code. Depending on the Chapter that you file, either Chapter 7 liquidation bankruptcy or the Chapter 13 repayment bankruptcy, the debt may or may not be dischargeable. The following are some common debts that may not be dischargeable:

Chapter 7: non-dischargeable debts

1. Taxes and tax liens (depending on the statutory time period, they may be dischargeable)
2. Student loans
3. Domestic Support Obligation
a. Including :
i. Child support
ii. Spousal support
4. Non-Domestic Support Obligation
a. Including
i. Property settlement agreement
5. Debts obtained through fraud, false pretenses or false representation
a. Including:
i. Cash advances taken within 70 days of filing for bankruptcy
ii. Luxury good purchases within 90 days of filing for bankruptcy
6. Criminal fines
7. Debts for fines and penalties owed to governmental units
8. Debts for fraud while the debtor was acting within a fiduciary capacity
9. Debts for judgment in wrongful death or personal injury lawsuit resulting from motor vehicle, vessel or aircraft accidents while you were intoxicated
10. Condominium or association fees or assessments
11. Debts for willful and malicious injury

Chapter 13: non-dischargeable debts

1. Domestic Support Obligation
a. Including:
i. Child support
ii. Spousal support
2. Student loans (unless you show undue hardship)
3. Criminal fines
4. Debts for fraud while the debtor was acting within a fiduciary capacity
5. Debts for judgment in wrongful death or personal injury lawsuit resulting from motor vehicle, vessel or aircraft accidents while you were intoxicated
6. Debts for willful and malicious injury
7. Debts incurred after your bankruptcy filing (unless you convert to another Chapter or modify)

Each case is unique and not one is the same as another. Everyone has their own unique facts and interest that they want to protect through a bankruptcy. Depending on your situation, you may qualify for both Chapter 7 or Chapter 13 bankruptcy. But which case is best for you and your interests?

Allow KimLy Law Firm, PLLC, your Houston Bankruptcy Attorneys to assist you in determining what your best options are in your current situation.

The 1st consultation is FREE with a live attorney.

Contact us:
Phone number: (832) 446-6391

Address:
616 FM 1960 RD West (616 Cypress Creek Pkwy)
Suite 105
Houston, Texas 77090
(Inside the CHASE office building)

This entry was posted in News. Bookmark the permalink.