Dischargeable Debts
Dischargeable debts are those debts that can be discharged through bankruptcy proceedings. A debtor is no longer personally liable to pay for dischargeable debts after the bankruptcy proceedings are concluded.
Dischargeable Debts
The following debts are dischargeable:
- Back Rent
- Utility Bills
- Some Court Judgments
- Most Credit And Charge Card Bills
- Department Store And Gasoline Company Bills
- Loans From Family And Friends
- Newspaper And Magazine Subscriptions
- Legal, Medical, And Accounting Bills
- Most Unsecured Loans
- Repossession Deficiencies
- Auto Accident Claims
- Judgments
- Business Debts
- Leases
- Guaranties
- Negligence Claims
- Tax Penalties Over Three Years Old
- Income Taxes That Are Not Priority Taxes
Dischargeable Debts Unless Objected to by Creditor
The following four categories of debts are dischargeable unless a creditor objects to dischargeability:
- Debts Incurred On The Basis Of Fraudulent Acts
- Debts From Willful Or Malicious Injury To Another Or Another's Property, Including Assault, Battery, False Imprisonment, Libel, And Slander
- Debts From Larceny, Breach Of Trust Or Embezzlement
- Debts Arising Out Of A Marital Settlement Agreement Or Divorce Decree That Are Not Otherwise Automatically Nondischargeable As Support Or Alimony.
The court will enter an order granting a "discharge" of all dischargeable debts that existed on the date the case was filed if creditors have not filed a suit to stop a debtor from getting out from under debts within 60 days of the Section 341 meeting of creditors. It is possible to obtain a discharge even while there are pending disputes as to whether specific debts should be paid. Whether the debt that is the subject of a dispute will be discharged or not depends on the outcome of a hearing.
To learn more about which of your debts you can discharge in bankruptcy, contact bankruptcy attorney Thomas M. Root by calling 281-823-7016.
