Debt Discharge: Part 2

A debt discharge in bankruptcy will free you from the liability over the debt going forward. There are certain types of debt that are not eligible for a debt discharge in bankruptcy unless the debt is resolved, such as recent federal taxes, some student loans, and secured debts where the collateral is not being surrendered. There are a few additional types of debt that may influence the ability to obtain a debt discharge. Because of the individualized nature of debts and debt discharges, there are some important considerations.

Different Debt Discharges

If you have already filed bankruptcy once, then you are not eligible for another discharge in a second bankruptcy unless you wait a sufficient period of time. A bankruptcy may provide other benefits besides a discharge, such as an automatic stay and reorganization power that a debtor has which can help alleviate the burden of debt on a monthly basis.

Debts incurred through fraud. If you knowingly make a false statement or representation on a credit application, or purposely conceal income or property from the court, you may have to pay those debts even after bankruptcy. If a creditor had a claim against you that was not listed in your bankruptcy petition, that creditor might be able to collect that debt from you after bankruptcy.

To learn more about debt relief options or to ask questions about the bankruptcy process, call our team of experienced Sacramento bankruptcy lawyers today.