Texas Dischargeability Lawyer
A financial obligation which is discharged under bankruptcy is debt which you are no longer required to pay. Some debts are said to be nondischargeable, meaning you are still obligated to pay these debts. The Bankruptcy Code specifies a list of debt categories that are either automatically excepted from the discharge of bankruptcy, or that can be ruled nondischargeable if the holder of the claim files an objection to discharge in Bankruptcy Court. To see how dischargeability issues in your case can be managed, contact the San Antonio bankruptcy lawyers at Rosenbaum Law Offices (now Davis Law Firm).
Many of our clients have nondischargeable debt listed on their schedules. Especially in Chapter 13 cases, favorable arrangements can be negotiated and incorporated in the payment plan. Examples of nondischargeable debts include:
- Government Guaranteed Student loans
- Recent taxes, or taxes for which returns have not been filed
- Child support or alimony obligations
- Criminal fines for DUI
- Credit card debt involving fraud or recent abuse
- Loans obtained under fraudulent circumstances
- Punitive damages in drunk driving accidents
Although a few of these debts can be discharged under certain narrow circumstances involving hardship and good faith efforts for repayment, you should assume that any debt on this list will not be discharged in bankruptcy until you have the opportunity to discuss your situation with a lawyer experienced with dischargeability issues and litigation on objections to discharge.
Tax debts, if more than three years old and with the returns properly filed at least two years prior to bankruptcy, are usually dischargeable as unsecured claims.
Even if a debt is not dischargeable, collection in most cases will still be prevented by the automatic stay as long as the bankruptcy case is pending. An important exception to this general rule is a claim for child support or spousal support.
Our main approach to resolving problems with nondischargeable debts is to work with the creditor to achieve payment arrangements that are feasible for the debtor. In many cases, we can also achieve an abatement or forgiveness of interest or penalties, especially in exchange for accelerated payments when possible.
On rare occasion, we see the Chapter 7 trustee or United States Trustee file an objection to the debtor’s general discharge on the grounds of fraud or similar violation of bankruptcy rules, such as false statements on the petition or concealing assets. If successful, the objection would result in a denial of discharge for any of the debtor’s obligations. By working with you prior to the filing of the petition, we can usually eliminate any risk of an objection to the general discharge simply by making sure that the schedules of assets are complete and accurate. It is up to the debtor to make a full disclosure of all relevant financial circumstances.
For additional information about nondischargeable debts or objections to discharge, contact a seasoned bankruptcy attorney at Rosenbaum Law Offices for a confidential and free consultation.