What Debts Are Discharged In Bankruptcy?

Filing for bankruptcy can be a very effective method of eliminating excessive debt and getting back on the right financial path. Before you begin the bankruptcy process, it is important to understand what bankruptcy can and cannot do for you. One of the most important considerations in evaluating bankruptcy as a debt relief option is knowing which types of debts can be discharged and which cannot.

Experienced Essex County debt and bankruptcy lawyers Bruce Levitt and Shelley Slafkes have represented thousands of people throughout New Jersey who are facing financial hardship due to unmanageable amounts of debt. We provide comprehensive personal and business bankruptcy services, including Chapter 7, Chapter 11 and Chapter 13 filings. We conduct a thorough review of your situation and help you determine the best approach to get the debt relief you need. Contact us today.

What Is A Discharge And Why Is It Important?

Every person receives a discharge at the end of his or her bankruptcy proceeding. Once you get your discharge, you have no further obligation to pay any debt that was included in your bankruptcy. Even if the debt was not paid in full, the creditor is not allowed to continue collection activity if the debt was discharged in your bankruptcy.

While most debts can be discharged in bankruptcy, several cannot. Generally speaking, the following types of debt cannot be discharged:

  • Most student loans
  • Federal income taxes that are less than three years past due
  • Child support and other obligations ordered in a divorce agreement
  • Fines and restitution associated with criminal activity or malicious conduct
  • Fraudulent debt

Ask A Lawyer Your Questions For Free

Contact Levitt & Slafkes, P.C., to discuss your debt relief options with an attorney. We offer a free initial consultation where you can find out which of your debts is dischargeable and get all of your questions answered. You can reach us by filling out our online form or by calling 973-323-2953.