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
Unexpected Benefit: Stop Collection on an Allegedly Fraudulent Debt
You’re not likely to be accused of creating a fraudulent debt. But if so, bankruptcy can stop its collection. And resolve the problem. Most Debts are Discharged (Permanently Written Off) in Bankruptcy The federal Bankruptcy Code has a list of the kinds of debts that filing bankruptcy does not discharge. This list details the conditions under which discharge does … Read More
The Chapter 7 Trustee Opposing Your Discharge of Debts
In most Chapter 7 cases nobody opposes your discharge of debts. They get written off. But the trustee is one who might raise issues. Last week we discussed the role of the Chapter 7 trustee in reviewing your assets at the “meeting of creditors.” Today we get into the other main job of the trustee, to, “if advisable, oppose … Read More
The Timing on Writing Off Recent Credit Card Debt
Using a credit card shortly before filing bankruptcy doesn’t seem right. The law agrees. Writing off this kind of debt can be a problem.
An Example of the Judge’s Ruling in a Dischargeability Proceeding
In our example of the adversary proceeding about whether a debt gets discharged, here is the bankruptcy court’s ruling on the matter.
An Example of the Closing Arguments in a Dischargeability Proceeding
In our example about the adversary proceeding about whether a debt gets discharged, here are the creditor’s and debtor’s closing arguments.
An Example of a Trial in a Dischargeability Proceeding
In our example about the process about whether a debt gets discharged, here’s what happens at the bankruptcy court trial itself.
An Example of Discovering the Facts in a Dischargeability Proceeding
Here’s how the debtor and creditor get at the facts in an adversary proceeding about whether a debt gets discharged.
An Example of an Answer to a Creditor’s Dischargeability Complaint
Here’s an example showing how to answer a creditor’s complaint objecting to the legal write-off of a debt in bankruptcy.
An Example of a Creditor’s Dischargeability Objection
Here’s an example showing in a practical way what happens when a creditor objects to the legal write-off of a debt in bankruptcy.
How to Respond to a Nondischargeability Complaint
If a creditor objects to you writing off –discharging–a debt in a Chapter 7 bankruptcy on grounds of fraud, here are your practical options.
Objection to the Discharge of Any of Your Debts
A creditor or a bankruptcy trustee could potentially object to the discharge–legal write-off–of ALL your debts. Very rare, and preventable.
Pay Nothing on Most Debts in Chapter 13
In some jurisdictions you can pay nothing to your “general unsecured” creditors, if all your money goes to paying higher priority ones.
Permanently Discharge Debts in Bankruptcy
The main goal of bankruptcy is often to write off–“discharge”–your debts. Here’s how it works in Chapter 7 “straight bankruptcy.”