Many types of debts can be discharged by a Chapter 7 bankruptcy filing. However, there are some debts that can’t be wiped out during the Chapter 7 bankruptcy process.
Debts that can be discharged in a Chapter 7 bankruptcy include:
- Credit Card Debt
- Medical Bills
- Lawsuit Judgments Against You
- Most Debts Arising From Car Accidents
- Obligations Under Leases and Contracts
- Personal Loans (this includes check-cashing and payday loans)
First of all, debts that aren’t listed in the paperwork you file with the bankruptcy court will not be discharged. The reason is that the bankruptcy rules require that a creditor be given notice or knowledge of your bankruptcy filing. So, make sure that you provide your Baltimore bankruptcy attorney with information on all of your debts, large and small, so that he or she can make sure that the debts are listed in the paperwork you file with the court.
Certain taxes can’t be discharged. However, some taxes can be discharged. It depends on how old the tax debt is and when the tax debt was assessed by the taxing authority. An Ocean City bankruptcy attorney can provide more details.
- Child support and alimony can’t be discharged in a bankruptcy.
- Student loans are not dischargeable. However, there is a hardship exception to this rule; but, it is rarely granted.
- Fines, penalties, and restitution owed for breaking the law can’t be discharged.
- Debts that come from someone’s death or injury as a result of intoxicated driving can’t be discharged.
- Condo, coop, and homeowner’s association fees can’t be discharged in a bankruptcy.
Running up debt right before you file for bankruptcy
Knowing that you are about to declare bankruptcy, don’t go out and run up the amount owed on your credit cards. Although credit card debt is dischargeable, credit card purchases made within 90 days of the bankruptcy filing are not dischargeable if the creditor objects. Cash advances obtained shortly before the bankruptcy filing are also not dischargeable if the creditor objects.
But there is a strategy for dealing with non-dischargeable debts if you are interested in a Chapter 7 bankruptcy. A debtor can do what is called a “Chapter 20.” This means that the debtor files a Chapter 7 bankruptcy to get rid of debt that can be discharged and then files a Chapter 13, which is a reorganization of the monthly payments owed on the non-dischargeable debts.
The Law Office of Thomas J. Maronick is open during the pandemic and will continue to meet your Annapolis, Baltimore, Essex, Ocean City, Towson, White Marsh bankruptcy needs. A Baltimore bankruptcy attorney can help you to determine the best way to get out of debt and out from under creditor calls. An Ocean City bankruptcy attorney can devise a strategy for you that allows you to use the bankruptcy laws to your advantage. The consultation is free.
We can meet with you remotely if you have access to Zoom. You can contact Thomas Maronick on his cellphone at 202.288.0167, the law office at 410.885.1775 or through the website for a free consultation.