Most people who file for bankruptcy relief do so to get rid of their debts. This discharge of their debts allows them to start over financially. However, most clients who visit our office do not know which debts are dischargeable and which may remain after their case is over. These debts that may remain after a bankruptcy case is discharged are called nondischargeable debts.
Most Common Types of Dischargeable Debt
- Credit Cards
- Personal Loans
- Medical Bills
- Liability on Repossessed Vehicles and Foreclosed Homes
Most Common Types of Nondischargeable Debt
- Student Loans
- Taxes (but not all of them)
- Child Support and/or Alimony
Potential clients must also remember that just because a debt is dischargeable does not mean it will automatically be discharged. Any creditor can challenge the dischargeability of their debt for a number of reasons. The major exception to dischargeability of a debt is based on some kind of fraud. A creditor can challenge the dischargeability of a debt if it was incurred by false pretenses, a false representation, actual fraud, or a false written statement with certain conditions. To ensure that the debts you have will be properly discharged in your bankruptcy case and you will receive the fresh start you desire, please consult an experienced bankruptcy attorney today.