When you are considering filing Chapter 7 bankruptcy, you want to be sure to understand exactly which debts will be eligible for discharge. Although a wide variety of debts are forgiven after successfully declaring Chapter 7 bankruptcy Las Vegas, not all debts are erased. Here is a list of the debts that will be forgiven and those you will still be responsible for paying.
DEBTS THAT CAN BE FORGIVEN AFTER CHAPTER 7 BANKRUPTCY
After you declare bankruptcy, you are no longer legally responsible to pay the forgiven debts. In addition, your creditors cannot take any action against you to try to collect that money. In some cases, a valid lien can be placed against certain possessions so that the creditor can take things like a vehicle in exchange for debt. Some liens can be avoided in bankruptcy proceedings as well.
Typically, after you declare Chapter 7 bankruptcy, you will receive a discharge for your eligible debts about 120 days after you file your petition. Remember that only eligible debts that are incurred before you file your bankruptcy petition will be forgiven; those you rack up after you file will remain your future responsibility.
Here are the most common dischargeable debts for Chapter 17 bankruptcy. Be aware that any foul play related to these factors may make them non-dischargeable in a particular case.
* Charges and fees on credit cards
* Medical, dental and hospital bills
* Collection agency accounts
* Utility bill balances that are past due
* Personal loans from family and friends
* Business debts
* Social security and veteran assistance overpayments
* Some attorneys fees
* Some older unpaid taxes and related penalties
* Most auto accident claims
* Repossession deficiency balances
* Non-fraudulent dishonored checks and civil court judgments
* Most revolving charge accounts
* Past-due rent and other lease agreement bills
* Student loans where undue hardship exists
Before filing Chapter 7, you'll want to be sure that the debts you are trying to discharge will be wiped out after filing. There are several debts that are not dischargeable even in a bankruptcy case.
* Government debts
* Most student loans for higher education
* Child support or alimony payments that you owe from past obligations
* Most of your back taxes
* Any secured debts that you have
* Any debts that you fail to list on your Chapter 7 bankruptcy filing petition
* Debts that are tied to fraudulent activity
* Auto claims involving drunk driving
* Debts incurred after filing date
* Debts that are incurred in a second bankruptcy filing within time limits
* Debts that do not have the required paperwork
To learn more, contact Vohwinkel and Associates. These bankruptcy lawyers in Las Vegas have years of experience to help you better understand which of your debts can and cannot be discharged in particular bankruptcy cases. Get professional assistance to make sure you fully understand your options.