What Debts Can Be Discharged In Chapter 7 Bankruptcy?
In bankruptcy, not all debts are dischargeable, which is why it is important to know the dischargeable debts in Chapter 7 bankruptcy in Broomfield, CO. Filing for bankruptcy is a major life decision that can affect your personal and financial life for many years, and it’s crucial to understand what Chapter 7 can and cannot do for you.
At the Law Office of Clark Daniel Dray, we have a team of Broomfield bankruptcy lawyers who are dedicated to helping individuals and families overcome financial challenges and achieve a fresh start. We have the knowledge and resources to guide you through the bankruptcy process and help you achieve the best possible outcome. Schedule a free consultation with us today and let us help you take the first step toward a brighter financial future.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, also known as liquidation or straight bankruptcy, is a process in which you can ask a bankruptcy court to wipe out most of your debts so you can start over. This type of bankruptcy involves the liquidation or sale of your assets to pay as much of your creditor debt as possible.
Chapter 7 is the most common bankruptcy option available to individuals. To qualify for this type of bankruptcy, you must meet specific eligibility requirements such as the “means test.” In Chapter 7 bankruptcy, you will keep all the exempt property, but the non-exempt property can be taken from you and sold for the benefit of your creditors.
Whether bankruptcy is a valid option for you also depends on the type of debt you have. Not all debts can be discharged through bankruptcy. You will typically get out of debt in Chapter 7 bankruptcy through a discharge, but you may still owe certain non-dischargeable debts after bankruptcy. Our Chapter 7 bankruptcy attorney in Broomfield, CO can help you understand how bankruptcy works.
What Are Dischargeable Debts?
Dischargeable debts are obligations that can be wiped out by your bankruptcy discharge. A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. Because a Chapter 7 discharge is subject to many exceptions, it is crucial to seek legal advice from our Broomfield Chapter 7 bankruptcy lawyer who can help you determine which debts can be discharged and which cannot.
When you receive a bankruptcy discharge, you are no longer obligated to pay any of these debts and creditors cannot come after you to collect them. It is a permanent order that prohibits your creditors from taking any form of collection action on discharged debts, including legal action and communications.
What Debts Can Be Discharged Under Chapter 7 Bankruptcy?
One of the key benefits of Chapter 7 bankruptcy is the discharge of certain debts, as it allows debtors to get a fresh start financially and move forward without the burden of overwhelming debt. To determine which debts are dischargeable in your particular case, it’s important to consult with our Broomfield CO bankruptcy attorney who can review your financial situation and help you understand your options.
The types of debt Chapter 7 bankruptcy discharges are:
- credit card debts (including overdue and late fees)
- medical bills
- business debts
- old tax penalties and unpaid taxes
- past-due utility balances
- collection agency accounts
- personal loans from friends, family, and employers
- most auto accident claims
- repossession deficiency balances
- most attorneys’ fees
- government program overpayments (including welfare, Social Security, and veterans assistance programs)
- most civil court judgments
- past-due rent and money owed under lease agreements
What Debts Cannot Be Discharged Under Chapter 7 Bankruptcy?
While Chapter 7 bankruptcy can eliminate many types of debts, certain debts are not dischargeable. The U.S. Bankruptcy Code lists different categories of debts that cannot be discharged. Creditors will still be able to collect these debts from you even after you filed for bankruptcy. Our Broomfield bankruptcy attorney can help you determine which debts you can and cannot discharge under the Bankruptcy Code.
Here are some of the most common categories of non-dischargeable debts:
- Child support and spousal maintenance (alimony)
- Student loans
- Court fees
- Recent federal, state, and local taxes
- Government-imposed restitution, fines, and penalties
- Debts from embezzlement, theft, or breach of fiduciary duty
- Debts that were non-dischargeable in a prior bankruptcy
- Debts owed to certain pension plans
- Debts not dischargeable in a previous bankruptcy because of the debtor’s fraud
- Debts from willful and malicious acts
- Debts from a divorce settlement agreement or court decree
- Debts resulting from personal injury or wrongful death damages from drunk driving cases
- Certain debts owed for condominium dues and fees
- Debts that were not listed at the start of the case (or debts for unlisted creditors)
Why Do I Need a Chapter 7 Bankruptcy Lawyer in Colorado?
When filing for bankruptcy, the goal is to eliminate as much debt as possible and get a fresh financial start. As part of this process, several types of debts will be discharged immediately or at the end of the bankruptcy process. If you’re struggling with overwhelming debt and considering filing for bankruptcy, it would be wise to work with our credible Broomfield Chapter 7 bankruptcy attorney who can help you learn whether bankruptcy would be a reasonable solution for you or your business.
At the Law Office of Clark Daniel Dray, we are dedicated to:
- assisting both individuals and businesses to find relief from debt and take control of their financial futures by taking advantage of the protections under bankruptcy law.
- explaining which debts are dischargeable and which are not, and working closely with you to develop a plan to address your non-dischargeable debts.
- helping you navigate the bankruptcy process and understand your rights and options.
- completing a significant amount of paperwork and complying with various rules and requirements.
- helping you identify which of your assets are exempt from liquidation and ensure that your property is protected to the fullest extent possible.
- offering personalized bankruptcy and debt resolution services that will relieve you of your financial problems and help you get a fresh start.
Our legal team can help ensure that your bankruptcy case proceeds smoothly and that you get the best possible outcome from the process. We have extensive experience helping clients achieve debt relief through Chapter 7 and Chapter 13 bankruptcy. Contact us today to schedule a free initial consultation and learn how we can help you.
Call Our Seasoned Broomfield Chapter 7 Bankruptcy Attorney Now!
By knowing which debts can be discharged in Chapter 7 bankruptcy, you can develop a strategy to address your non-dischargeable debts in Chapter 7 bankruptcy in Broomfield CO and maximize your debt relief under Chapter 7 bankruptcy. It can help you avoid surprises and ensure that you are fully prepared for bankruptcy. It can also help you plan for the future and make important decisions about your finances.
At the Law Office of Clark Daniel Dray, our Broomfield Chapter 7 bankruptcy lawyers have extensive experience helping clients navigate the bankruptcy process and achieve their financial goals. Our bankruptcy law firm offers a wide range of legal services to help you through difficult times. We know that every situation is unique, and we’ll work tirelessly to ensure that your rights and your best interests are protected.
Whether you’re dealing with Chapter 7 bankruptcy, Chapter 13 bankruptcy, or estate planning issues in Broomfield, Boulder, Denver, Littleton, or Louisville, we are here to guide you every step of the way. Contact us today to schedule a free consultation to learn more about how we can help you benefit from protection under Chapter 7 bankruptcy.