Debt that Cannot be Discharged by a Chapter 7 Bankruptcy Action
When you make the decision to file for bankruptcy, you should be aware that there are some debts that cannot be discharged, and you will ultimately be responsible for paying those debts after your bankruptcy proceedings have come to an end. Non-dischargeable debts must be considered when you plan to tackle your debt-head on. It may turn out that one form of debt-management is better than another given the possibility that you will still have remaining debts following bankruptcy.
Non-Dischargeable Debt in Chapter 7 Bankruptcy
If you choose to file for Chapter 7 (liquidation) bankruptcy, you may not be able to discharge some of your debt. The reasons for not being able to discharge certain debts during bankruptcy include, but may not be limited to, the following:
• Failure to follow the bankruptcy court’s rules and procedures;
• A bankruptcy court’s granting of a creditor’s objection to discharging a debt that is normally dischargeable (such as a credit card or personal loan); and
• Having a debt defined as “non-dischargeable” by the Bankruptcy Code (with few exceptions), such as:
o Debt arising from willful or malicious damage to property;
o Child support;
o Spousal support;
o Student loans;
o Attorneys’ fees in child support and spousal support proceedings; and
o Other court-mandated fines and penalties.
If you will have a substantial amount of non-dischargeable debt, you should consider consulting with a debt-management and bankruptcy attorney who can help you find a means of wiping out your debt in the most feasible and cost-effective way possible.
Chapter 13 Bankruptcy
If you choose to file for Chapter 13 bankruptcy, you will be able to discharge some of the debts listed above, such as tax debt, debt incurred after a divorce or separation, and debt you incurred as a result of willful or malicious damage to property. However, it is important to understand that with Chapter 7 bankruptcy, you are able to discharge a substantial amount of debt in a short period of time, while a Chapter 13 bankruptcy could last a few years and you will be required to have a repayment plan to pay your debt off.
Which Type of Bankruptcy is Better for Me?
To determine which method of bankruptcy is best for your personal and financial situation, you should, with the assistance of a qualified debt-management and bankruptcy attorney, calculate what your total debt is and categorize what debt is dischargeable and what debt is not dischargeable under Chapter 7 bankruptcy. It may turn out that the ability to discharge debt quickly outweighs the consequences of still being responsible for the non-dischargeable debts described above. On the other hand, if you have a substantial amount of non-dischargeable debt, Chapter 13 bankruptcy may be the better option for you, despite the length of time it will take to discharge your debt.
Contact The Law Offices of Georgette Miller and Associates, P.C. Today
Understanding what debt can and cannot be discharged from bankruptcy is essential before making the important decision of whether or not you should file for such an action in the first place. With the help of an experienced debt-management and bankruptcy attorney, you can choose a specific debt-relief plan that works best for your individual financial situation. The Bankruptcy Attorneys of the Law Office of Georgette Miller and Associates, P.C. thoroughly advocate for their clients and have the skill to help you tackle your debt. Our office provides debt-management and bankruptcy services to businesses and individuals located in or around Philadelphia, PA, New York, New Jersey, Washington, D.C., and Wilmington, DE. Contact our office today by calling (866) 96-GMLAW to set up an initial consultation with one of our attorneys.