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.
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.
Bankruptcy
If you’re facing bankruptcy in Illinois, you’re not alone – - don’t hesitate before calling a trusted law firm for assistance.
A Barrington bankurptcy lawyer will provide relief from—
Collections calls
Threats of repossession
Concerns about losing your business
IRS troubles
Fear of foreclosure
Insurmountable credit card debt
Types of bankruptcy matters:
Chapter 7 bankruptcy
A Chapter 7 bankruptcy is often called a liquidation. Many people who file for bankruptcy do so because of a serious medical issue, divorce, or a change in employment. Sometimes it is simply insurmountable consumer or credit card debt. A Chapter 7 frequently allows you to forgive many if not all of your allowable debts. These often include credit cards, medical bills, and utility bills.
Chapter 11 bankruptcy
Chapter 11 is a form of reorganization frequently used by corporations, partnerships, and businesses. Usually, the debtor retains its assets, continuing to operate the business under the court’s supervision of the court. Chapter 11 is probably the most flexible of all the chapters.
Chapter 13 bankruptcy
A Chapter 13 bankruptcy is often referred to as a reorganization but rather than businesses, it is more often used by individuals. Rather than wiping the slate clean like in a Chapter 7, this type of bankruptcy allows people to repay all or part of their debts across a long period of time. The debts and payment amounts can be restructured to make them more affordable, commensurate with your income.
bestcreditcardforcollegestudent.com Finding the best credit cards after bankruptcy discharge can be quite challenging and frustrating. Bankruptcy will destroy your credit ratings, which makes getting a decent credit card difficult. After declaring bankruptcy, everything you will apply for that requires stringent credit checks will be completely denied. Fortunately, cards that were specifically designed for borrowers with poor credit history will always have something in store for you. If you know exactly what to do, you can still find a credit card with a low-interest rate despite your not-so-promising credit scores.