Debts Discharged in New York BankruptcyThursday, September 8th, 2016, 12:05 am
When filing for Chapter 7 bankruptcy, some people believe that all their debts will be wiped away and they will be given a fresh slate. And while some debts can be discharged, not all will be eliminated.
If you’re considering filing for bankruptcy, you’ll want to know what if your debts will be discharged and which will remain.
Dischargeable Debts with Brooklyn Bankruptcy
When a debt is discharged through bankruptcy, the obligation to repay that debt is eliminated. Some of the most popular dischargeable debts include credit card bills, medical bills, personal loans from private sources like friends or family, past utility bills, attorney fees, past due rent, and unpaid taxes.
The amount that will be discharged is dependent on the amount that you owe on the day you file for Chapter 7 bankruptcy in Brooklyn. If you acquire additional debt on your credit card or through other bills, you will still be responsible for making consistent and full payments.
If you have a particular debt you would like to guarantee is considered a dischargeable debt, you will want to speak with a Brooklyn bankruptcy attorney before you begin the filing process.
Debts that are Not Dischargeable with Bankruptcy
As we mentioned, not all of your debts will be dischargeable under Chapter 7 bankruptcy. If you have liens against property, such as a mortgage with your home or a title loan with your vehicle, these debts will probably not qualify to be discharged. If you are unable to make these items exempt in the bankruptcy process, they will likely be sold to cover the debts that you owe.
For most individuals, student loans are another kind of debt that will not be able to discharge with bankruptcy. Other debts that may not be dischargeable include past payments of child support or spousal support, and any kind of debt you accumulated by committing fraud.
To talk about the full extent of your debts and what can be discharged when filing for Chapter 7 bankruptcy, contact a bankruptcy lawyer at Michael F. Kanzer & Associates, P.C. We are experts at helping Brooklyn residents file for bankruptcy and get back on their feet.