Dischargeable Debts

Dischargeable Debts

One of the major appeals of Chapter 7 bankruptcy is the wide scope of debt discharge, usually providing a sufficient level of debt relief to allow a debtor to effectively start over again. However, the law establishes special guidelines for circumstances that may require a debtor to continue paying his or her creditors when the debt would normally be discharged. In these situations, there can be a great deal of legal confusion over how debt discharges can be denied.

If you are considering filing for bankruptcy, contact a Birmingham Chapter 7 bankruptcy lawyer from GREENWAY BANKRUPTCY LAW, LLC at (205) 324-4000 to learn more about your options.

Types of Dischargeable Debts

Under normal circumstances, debt incurred by a debtor that is generally considered dischargeable will be discharged. However, the court may refuse to discharge a particular debt if the debtor has proven to be negligent regarding his or her treatment of creditors.

Debts that are commonly discharged include:

  • Credit card balances
  • Business loans
  • Post-repossession payments
  • Personal debt
  • Car accident and negligence claims not willfully caused

Generally speaking, a conscientious debtor who simply made a few costly financial mistakes will have few issues discharging major debts. In addition to discharges, debt may be retained, or reaffirmed, if a debtor agrees to pay a creditor in return for a promise to not repossess certain possessions.

Contact Us

The details of bankruptcy law can be quite complex, especially when it comes to the discharge of debts. If a creditor believes that their debt is non-dischargeable, they may fight for their payments, despite the debtor’s inability to pay. Help protect your financial interests and learn more about your legal rights by contacting a Birmingham Chapter 7 bankruptcy attorney from GREENWAY BANKRUPTCY LAW, LLC at (205) 324-4000.

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