Can you keep your vehicle without signing a reaffirmation agreement and putting up with the risks of owing a debt after a future repossession? Last week we discussed keeping your vehicle in Chapter 7 by entering into a reaffirmation agreement with your vehicle lender. Through this agreement you exclude your vehicle loan from the discharge (legal write-off) of your debts. In … Read More
Reaffirm Your Vehicle Loan in Chapter 7
To keep your vehicle and be able to afford to pay for it, reaffirm your vehicle loan in Chapter 7 and discharge your other debts. A Vehicle Loan is a Secured Debts We started this series of blog posts on debts by introducing secured debts as follows: Each of your debts is either secured by something you own or it … Read More
Dealing with a Debt Not Listed in Your Bankruptcy Case
The consequence of a debt not listed in your bankruptcy case is you may still owe it afterwards. So how do you make sure to list every one? Several blog posts ago we introduced the law that debts “neither listed nor scheduled” risk not being forgiven in bankruptcy. Section 523(a)(3) of the U.S. Bankruptcy Code. This follows the bankruptcy principle that debts … Read More
Dealing with a Debt Sold to a Collection Agency
You should list all your debts when you file bankruptcy, but what if one was sold to a collection agency without you knowing about it? Our blog post two weeks ago was about needing to list all your debts in a bankruptcy case in order to write them off. This is part of a series of blog posts about … Read More
Debts Included Because Creditor Learns about Your Bankruptcy
You should list all your debts when you file bankruptcy. But a debt may also get discharged if the creditor timely learns about your case. Last week’s blog post was about the importance of listing all debts in a bankruptcy case to write them off. Debts “neither listed nor scheduled” in the bankruptcy documents are not discharged (legally written … Read More
Debts Not Listed in Bankruptcy
You must list all your debts when you file bankruptcy. So don’t skip any on purpose. Plus debts not listed you could still owe afterwards. Supposed to List All Creditors You can’t pick and choose which debts to include in your bankruptcy case. The U.S. Bankruptcy Code says that the first duty of a bankruptcy debtor is to provide … Read More
Bankruptcy Discharges Debts from Non-Intoxicated Vehicle Accident
Bankruptcy discharges claims against you from a vehicle accident, even if you don’t know how much you owe. But not if you were intoxicated. Vehicle Accident Claims If you had a vehicle accident, you could owe many kinds of debts from it. You could be liable for the current and future medical bills, loss of wages, pain and suffering, … Read More
Student Loans that Cause Undue Hardship Can Be Discharged
Bankruptcy does discharge a student loan, but only if it meets a tough legal standard called undue hardship. Here’s what you need to prove. Criminal fines and restitution and child and spousal support are types of debts that bankruptcy essentially never discharges. Income taxes can be discharged but only after meeting certain conditions. We’ve covered these in our last … Read More
No Discharging Child or Spousal Support
Bankruptcy does not discharge child or spousal support. The rare exception: if the support debt is not a “domestic support obligation.” We’re in a series of blog posts about special kinds of debt which bankruptcy may not discharge—write off. So far we’ve covered criminal fines and restitution, and income taxes. Child and spousal support are more like criminal debts … Read More
Bankruptcy Discharges Income Tax Debts (Some of Them)
Bankruptcy discharges income tax debts. They just need to meet some conditions, mostly based on when they were due and whether and when filed. Bankruptcy DOES Write Off Income Taxes There are certain very special debts that bankruptcy never discharges (writes off). Child and spousal support is a good example. See Sections 523(a)(5) and 101(14A) of the U.S. Bankruptcy Code. Income taxes are … Read More
Criminal Fines and Restitution Not Discharged in Bankruptcy
Bankruptcy does not discharge criminal fines and restitution, but gets rid of other debts so you can focus on all your criminal obligations. If you owe criminal fines, penalties, forfeiture, or restitution, bankruptcy does not help you directly with those debts. But bankruptcy can still provide you essential help in paying for essential expenses, including criminal related ones. … Read More
Debts NOT Discharged in Bankruptcy
Bankruptcy wipes out most debts. The only ones that aren’t are explicitly not discharged under federal bankruptcy law. Debts Covered by the Discharge The basic rule is that bankruptcy discharges all your debts unless a particular debt fits a listed exception. Focusing on Chapter 7 “straight bankruptcy” today, you will likely receive an Order of Discharge from the bankruptcy court within … Read More
Bankruptcy Wipes Out Debts
You know bankruptcy wipes out debts. But WHEN it does so is very different with Chapter 7 vs. Chapter 13. Either way, at the end they are gone. The main goal of most consumer bankruptcy cases is to get a fresh financial start through writing off debts. The legal bankruptcy term for write-off is “discharge.” In virtually all successful … Read More
Bankruptcy and Your Debts
Bankruptcy resolves your debts. How it does so depends on whether your debt is secured, priority, or general unsecured. Your debts are the reason you are reading this. You want to know how bankruptcy would deal with your debts. Will bankruptcy write off all your debts? Can you keep paying some of your debts like a vehicle loan or … Read More
Resolve Your 2018 and Earlier Income Tax Debts through Chapter 13
Do your 2018 taxes just add to your earlier income tax debts, making it all the more unmanageable? Chapter 13 may be your best solution. Last week we got into a big advantage of filing a Chapter 13 “adjustment of debts” case in early 2019. Doing so enables you to include 2018 income taxes into your Chapter 13 payment … Read More