Discharging Debt in New Jersey

The primary goal in filing for bankruptcy protection is to discharge debt. To discharge debt essentially means to eliminate your liability to pay it. It is important to understand that while most debts are dischargeable, there are a few that are not. When you complete your bankruptcy case, you receive a discharge order. You have no obligation to repay any debts that are included in the discharge order.  Also, once a debt has been discharged in bankruptcy, the creditor is prohibited from taking any further action to collect the money owed.  This means that the creditor cannot even contact you regarding the discharged debt. Generally, dischargeable debt is unsecured debt.  This means the debt is not secured by any collateral.  Under the Bankruptcy Code, certain types of debts are specifically excluded from discharge, depending on which chapter of bankruptcy the debtor filed under.  Examples of the more common debts that cannot be discharged include: •Child support and alimony •Most student loans •Some tax debts •Government fines •Debts resulting from certain crimes If you are considering bankruptcy and would like to know whether your debts can be discharged, you should consult an experienced bankruptcy lawyer to assist you. If you are interested in learning more about bankruptcy, contact Levitt & Slafkes, P.C. We are experienced in handling a variety of bankruptcy issues. Our offices are conveniently located in South Orange, New Jersey. Please call us at 973-323-2953 or online to schedule your free initial consultation today.