How can I determine if my debt can be discharged?

When you are filing bankruptcy, it is important to understand what debts will be discharged and how. There are several factors to consider when making this determination. 

First, you need to consider what chapter of bankruptcy you are filing:

• Chapter 7 results in the discharge of eligible debts once the money earned from the sale of your assets and the seizure of your accounts is paid out to your creditors
• Chapter 13 requires you to pay off your creditors, at least in part, over a 3-5 year repayment program, so there is no immediate discharge of debts. Remaining balances outside of the repayment plan will be forgiven at the end of the 3-5 year program

Once you know what chapter of bankruptcy you are filing, you need to know which debts are eligible for being included in a bankruptcy or discharged within it. 

• Eligible debts include things like credit cards, personal loans and medical bills
• Debts that cannot be discharged include things like back child support or other owed support obligations, back taxes owed, and student loans

Assuming the type of debt you have is eligible, it should be able to be discharged or included in your chapter 13 repayment plan. There are some exceptions, however, such as if you incurred the debt immediately before bankruptcy in order to knowingly take the money. Creditors can also object to the discharge of a debt through an adversary proceeding. 

A bankruptcy lawyer can assist you in understanding what chapter of bankruptcy you are eligible for, as well as what debts will be discharged and what will happen to your debts. Your lawyer can also help you if any of your creditors object to the bankruptcy or discharge of debts.