Discharge

Obtaining a Bankruptcy Court order granting a discharge of your debts is one of the primary goals in a bankruptcy case.

A debt that is discharged is no longer legally enforceable by anyone against you.

Most unsecured debts can be discharged in a bankruptcy case with the exception of:

1.  Employment taxes

2.  Income taxes that are less than 3 years old or those that have not been assessed within240 prior to the bankruptcy filing or or those where a return was not filed within 2 years of the bankruptcy filing or where the tax return was fraudulent

3.  Child support or alimony

4.  Student loans where there is no undue hardship

5.  Court fines and criminal restitution

6.  Personal injury awards resulting from driving drunk or under the influence of drugs

7.  Intentional injuries or actions

8.  Debts incurred by false pretense or fraud

The discharge order of the Bankruptcy Court only applies to debts that arose before the date that you filed for bankruptcy.  There are also limits on how many time you can obtain a discharge in a given period of time.

While a secured debt such as a car loan or mortgage loan can be discharged, if you wish to keep the property securing the debt, you must continue to pay the debt; otherwise the creditor can repossess the asset (in the case of a vehicle) or foreclose upon the mortgage (in the case of real estate).

If you have further questions, please call me at my Wilkes-Barre, Pennsylvania office at (570) 823-9400  or send an e-mail to me at davidharrisesq@epix.net to obtain free information.

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