Florida residents struggling to pay off their debts have an excellent option: bankruptcy. This is good news, but it comes with a caveat. Not all debts can be discharged in bankruptcy. Therefore, understanding which debts are dischargeable and which are not is crucial before you file for bankruptcy. Are you considering filing for bankruptcy but don’t know where to start? Look no further! Our dedicated bankruptcy attorneys can walk you through the process step by step.
The type of bankruptcy you file plays a significant role in this determination. The U.S. Bankruptcy Code lists 19 categories of debts that are non-dischargeable. Your specific non-dischargeable debts will depend on whether you file a Chapter 7 or Chapter 13 bankruptcy.
Chapter 7 bankruptcy discharges all qualifying debts, while Chapter 13 bankruptcy provides for the repayment of debts through a court-ordered plan.
There are certain debts that cannot be discharged under either Chapter 7 or Chapter 13 bankruptcy, including:
- Child support
- Certain fines
Additionally, liens on your property cannot be discharged. The lien, rather than the debt that created it, remains intact. This also applies to tax liens.
All eligible debts acquired after you file your bankruptcy petition are generally not dischargeable. If you convert a Chapter 13 bankruptcy to a Chapter 7, you can add these debts.
It’s essential to include all qualifying debts in your bankruptcy petition. This rule is important as it prevents you from being discharged from a qualifying debt that you failed to list.
Before filing for bankruptcy, it’s advisable to obtain copies of all your credit reports to ensure all your debts are listed. Neglecting to include a debt in your bankruptcy petition can result in a continued obligation to that debt.
This is a simplified overview of some common non-dischargeable debts in bankruptcy. Other non-dischargeable debts may apply to your case and could be exempt from discharge rules.
Understanding the bankruptcy code and determining which debts can be discharged is complex. Enlisting the help of an experienced bankruptcy attorney can greatly simplify this process.
This post was written by Trey Wright, one of the best bankruptcy lawyers in Tallahassee! Trey is one of the founding partners of https://brunerwright.com/, specializing in bankruptcy law, estate planning, and business litigation.
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