What Is A Discharge In Bankruptcy?

After a bankruptcy case is administered the client generally receives a discharge which states that they are no longer responsible for the deaths that were included in the petition. They would no longer have the obligation to pay these debts and they are deemed discharged.

What Debts Are Dischargeable In A Chapter 7 Bankruptcy?

Generally credit card debts personal loans car loans defaulted car leases utility bills medical bills are all dischargeable in a chapter 7 bankruptcy case.

What Debts Are Not Dischargeable In A Chapter 7 Bankruptcy?

Generally the debts that are not dischargeable in a Chapter 7 bankruptcy case include alimony child-support taxes fines and criminal penalties and student loans.

When Does The Discharge Occur?

Generally after a chapter 7 debtor appears at a creditors meeting and the meeting is closed 45 days after that will generally be the timeframe of receiving a discharge from the bankruptcy court.

When Would The Court Deny A Discharge In A Chapter 7 Case?

Chapter 7 could be moved to dismiss If there is some fraud involved in the information in the petition or there is excess income that may qualify for a chapter 13 plan. I generally wouldn’t file any chapter 7 case that is questionable. I make sure all my clients would qualify for a discharge prior to filing.

Does The Debtor Have The Absolute Right To A Discharge Or Can Creditors Object To The Discharge?

Creditors can object to a discharge in particular cases and for very specific reasons. If there was some kind of fraud involved in the debt or the debt is secured in some other manner by collateral or real estate a creditor may object to a discharge or start what’s called an adversary proceeding to try to collect on the debt.

Why Would A Creditor Object To A Debt Being Discharged?

If there is some kind of fraudulent activity alleged in the incurring of the debt or they feel that is secured in some other manner or that there is sufficient income to fund a chapter 13 plan where the debtor can pay back a portion of the debt.

What Can The Debtor Do If A Creditor Attempts To Collect A Discharged Debt After The Case Is Concluded?

If a creditor attempt to collect a debt that has been discharged in bankruptcy, they can be held in contempt by the bankruptcy court. Another avenue is filing a federal case against the creditor for trying to collect a debt that has been discharged in bankruptcy.

How Can The Debtor Obtain Another Copy Of The Discharge Order?

A debtor can always obtain a copy of their discharge or other papers in the case from the bankruptcy court.

What Are Some Questions People Have When They are Being Sued By A Debt Buyer?

Some people are under the belief that they can go to jail as a result of a civil debt. This is obviously not true.

Can A Debt Buyer Sue For Any Type Of Debt?

Generally the answer is yes. An obligation that results from some type of contract for example credit card debt personal loan car loans car leases boat Loans are all collectibles through legal proceedings.

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