When you're considering filing for bankruptcy, you'll see a lot of information about discharging debts. The purpose of filing for bankruptcy is to discharge as many debts as possible, which are debts that you are unable to pay off. If you are not sure of what it means to discharge a debt, keep reading to learn more.
What Are Discharged Debts
First, you must understand what a discharged debt actually is. Any debt that is discharged is a debt that you have no legal responsibility to pay. The creditor that you owe money to is not allowed to contact you in any way about collecting the debt owed, and you do not have to ever pay them the money that they are owed. Discharged debts are permanent, but there are some exceptions to what a creditor can do if there's an existing lien on your debt. In that situation, they'll be able to enforce their lien to collect the property that you owe as collateral.
How Fast Are Debts Discharged?
It could take a bit of time before debts are officially discharged. This is because the courts will need to process your bankruptcy request and decide on which debts can be discharged. The kind of bankruptcy used also will help determine how fast it takes. For instance, Chapter 13 bankruptcy is typically faster than using Chapter 7, which can take several months to complete.
When creditors are harassing you for debts during bankruptcy proceeding, be sure to have your lawyer contact them so that they know the debt will be officially discharged.
What Kinds of Debt Are Able to Be Discharged?
Be aware that there are debts that do not quality for being discharged, which also depends on the bankruptcy method used. You may have to pay some of them back, which include any tax related debt, or support payments for a child or spouse. Your attorney can let you know which debts you will still expect to repay once the bankruptcy proceedings are done.
Can Debt Discharges Be Objected To?
If you use the chapter 7 filing method, creditors can refuse to discharge a debt by filing an objection. If the judge approves the objection, you'll then be responsible for paying the debt. However, there are other forms of bankruptcy do not allow for objections to be filed.
For more help understanding discharged debts, work with a bankruptcy attorney, like one at O'Brien and Dekker Attorneys at Law. They can walk you through the entire process, and recommend a form of bankruptcy that will work best for your situation.Share
28 September 2016
Like many people, I once found learning about law very intimidating. My brother went to law school and I remember glancing through a few of his books and wondering if I was actually reading English due to all of the legal jargon in them! However, when I ended up in a sticky legal situation due to accidentally breaking a small law I didn't know existed, I realized that I needed to learn more about the law, so I could make sure to follow it precisely in the future. My brother helped to break down some complicated legal concepts to me, and I have since been studying up online. I want to post what I have learned and continue to learn about law in the future on my new blog, so my knowledge cannot only help myself, but also help others!