What is a bankruptcy discharge?

: Reese Baker & Associates

  Filed under: Filing bankruptcy

bankruptcy, discharge, chapter 13, chapter 7, bankruptcy attorney Houston texas, lawyer, bankruptcy fees, Texas, attorney,By filing bankruptcy, a discharge of debts is the overall goal in most cases. A discharge of debts in bankruptcy varies within the different chapters of 7, 11, and 13, but the end result is the release of personal liability for certain types of debts. A bankruptcy discharge is a permanent order eliminating the debt and preventing the creditor of the debt from pursuing or even contacting the debtor.

In a chapter 7 bankruptcy, debts such as credit card charges, medical bills, personal loans, civil court judgments, attorney fees, auto accident claims, repossession deficiency balances, past due rent and other money owed in lease agreements, and personal loans can all be discharged. Alternatively, student loans, certain taxes, alimony, child support, court fines and penalties, and personal injury debts caused by negligence or intoxication cannot be discharged.

In chapter 13, the dischargeable debts that can be eliminated are broader and can include those debts incurred to pay tax obligations, debts arising from willful and malicious injuries to property, and debts arising from property settlements in divorce.

It’s important to note that some types of debts may be challenged and withheld from discharge only if a creditor properly objects through the bankruptcy courts. These include cash advances that were received by the debtor within 70 days of filing bankruptcy, credit card debts for luxury goods exceeding more than $650 within 90 days of filing bankruptcy, and debt obtained by fraud or false pretenses.

There have always been qualifying criteria for obtaining the discharge of debts from the bankruptcy courts. In recent years, the qualifications for filing have become more stringent with the addition of new rules making it more difficult to file chapter 7 bankruptcies. A Houston TX bankruptcy attorney can help you by sitting down and going over your debts to help you understand each bankruptcy type, where your debt fits in, the likelihood of a successful filing, and help you navigate each step in the discharge process.