Florrisant Bankruptcy Attorneys Discuss Debt After Chapter 7

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Thursday, October 29th, 2009 Subscribe To Our Feed

Chapter 7 bankruptcies, sometimes known ominously as “liquidation”, can discharge a significant amount of debt. Before new reforms were put into place in late 2005, Chapter 7 could discharge significantly more debt. But with concerns over overuse and abuse to the bankruptcy system, Congress passed legislation that tightened the guidelines for filing Chapter 7 and now certain debts are not dischargeable and might remain even after other debt is discharged. Bankruptcy attornyes in Florrisant can advise you before you file which debts are not eligible for discharge.

While there may be some variation from state to state in the type of debt and allowed amounts, generally, Florrisant bankruptcy lawyers consider that the following debts may not be discharged in their entirety:

•    Child support and alimony due (including past due amounts)
•    Student loans (unless the court has established that repayment of the debt will cause “undue hardship” to the debtor and his or her dependents).
•    Debts incurred from being found guilty of driving while intoxicated or damages incurred due to an accident caused by drunk driving.
•    Debts not listed in the bankruptcy petition.
•    Debts owed to creditors not listed in the bankruptcy petition.
•    Court fees owed.
•    Federal, state and local taxes.
•    Restitution, fines and penalties assessed by the government.
•    Debts not dischargeable from a previous bankruptcy.

As a part of the bankruptcy process, creditors are given an opportunity to challenge your right to discharge some debts owed to them. The court may permit these disputes and cause the debts to be exempt from discharge if the creditors can show the debts fall in one of the following general categories:

•    The debt was created by voluntary and malicious actions(such as assaulting someone)
•    The debt was created by fraud. These categories include balances on credit cards charged within 90 days of the court filing for luxury goods and services.
•    Cash advances of more than $750 drawn from accounts within 70 days of filing the bankruptcy petition.
•    Debts stemming from a divorce settlement or other court decree which the debtor is able to pay and nonpayment hurts the recipient more than it benefits the debtor.

Contact one of the Florrisant bankruptcy lawyers for further information.

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