One of the reasons it’s important to hire a bankruptcy attorney is that an attorney can help you determine which chapter of bankruptcy you should be filing.
One of the considerations we use to determine your best bet is the types of debts you’re carrying. Some debts are dischargeable with a Chapter 13 bankruptcy but not when you file Chapter 7.
This is because Chapter 13 requires you to pay back at least a portion of your debts on a payment plan spanning years, then discharges whatever is left. This means the court is willing to include more types of debts, as your creditors would still be getting at least a portion of their money.
The three types of debt are:
- Debts for willful and malicious injury to property
- Debts for nondischargeable tax obligations
- Debts arising from property settlements in divorce or separation
Some forms of debt remain impossible to discharge even if you’re filing Chapter 13. These include:
- Child Support
- Tax liens
- Debts for death or personal injury caused by a DWI
- Debts you failed to list in your bankruptcy filing
In addition, student loan debt remains difficult (but not impossible) to discharge under any chapter of bankruptcy. You can generally discharge student loan debt when:
- A private loan amount that was higher than the cost of attendance
- A private loan amount for an institution that wasn’t eligible for Title IV funding
- A private loan amount that covered loan covered fees and living expenses incurred while studying for the bar exam or similar professional exams
- Private loans made to cover fees, living expenses, and moving costs associated with medical or dental residency
- Private loans made to students attending school less than full time
- Loans made to borrowers suffering from undue hardship after an adversary proceeding.
Bankruptcy can be complex. If you’re unsure whether your debts are eligible for discharge, aren’t sure what chapter of bankruptcy you should be filing, plan to file Chapter 13, or your case involves facts that could be under dispute, reach out to Haysom Law for a free consultation.
You shouldn’t try to go through the bankruptcy process alone. Your odds of success are much higher with a lawyer by your side, so call us today!
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