The order of discharge is a powerful tool for debt relief. It can wipe out a debtor’s legal obligation to pay a debt and it can wipe out the creditor’s legal right to collect the debt. However, the order of discharge is not automatic. The debtor must file a bankruptcy petition and the bankruptcy court must issue the order of discharge.
There are a few exceptions to the order of discharge. The exceptions are called nondischargeable debts. Nondischargeable debts are debts that the bankruptcy court has determined cannot be erased by the order of discharge. Nondischargeable debts in bankruptcy are those that must be repaid in full, even if the bankruptcy filing wipes out other debts. The most common nondischargeable debts are alimony and child support, taxes, and student loans. There are several other types of debts that are not discharged in a bankruptcy filing, including debts for fraudulent acts, damages from personal injury lawsuits, and some utility bills.
Anyone experiencing financial hardship or problems with debt should always seek the advice of an experienced Houston bankruptcy attorney. An attorney can help evaluate whether a particular debt is dischargeable or what debt relief options may be available.