Which Debts Can Be Discharged

It is an unfortunate reality that misinformation pushed by creditors and the armchair expertise of those who would stigmatize a bankruptcy filing have served to prevent those who are desperately in need of debt resolution from understanding all of their options. Taking the steps to become properly informed about the possible advantages and disadvantages of these different measures is crucial to getting your financial life back in order.

If you feel like every month you are struggling with the choice to either pay the debts that you have outstanding or to cover basic living expenses, then it may be appropriate for you to consider filing for bankruptcy protection. This can give you a fresh start and a chance to move forward with the lessons learned from this unfortunate episode. Contact the Birmingham bankruptcy lawyers of [firm-name] at [phone-number].

Dischargeable and Non-dischargeable Debts

In bankruptcy proceedings, a “discharge” is essentially equivalent to the forgiveness of a debt. When something has been discharged, barring the discovery that a bankruptcy filing was built upon fraudulent claims, then no future efforts may be made to recover that debt and it shall be considered to have been satisfied.

The following debts may be dischargeable, depending upon the chapter under which you file:

  • Medical bills
  • Debts associated with a business
  • Leases
  • Credit card debts
  • Judgments entered against you
  • Older tax penalties
  • Claims associated with auto accidents or civil proceedings

These, however, should not be considered to be dischargeable:

  • Newer taxes
  • Fines imposed by a criminal conviction
  • Student loans
  • Child support and alimony

Knowing which debts are dischargeable, and which are not, can help you enter bankruptcy proceedings with clear and realistic expectations.

Contact Us

Bankruptcy is not the right choice for everyone, but it may be right for you. To learn more, contact the Birmingham bankruptcy attorneys of [firm-name] at [phone-number].

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