Debtors could seek relief from their financial liabilities through discharge after filing for bankruptcy. If a debt is dischargeable, the debtor could lose legal responsibility to pay for it. The court could issue a discharge order for specific types of debt, protecting debtors from creditors taking measures to collect payments. However, not all debts could qualify for discharge.
Dischargeable debts could vary depending on the type of bankruptcy the debtor filed. Additionally, some debts are not eligible for discharge based on the debtor’s circumstances. Typically, the following debt types cannot be dischargeable:
- Tax claim payments
- Spousal support
- Child support
- Alimony
- Compensation for personal injury claims against the debtor
- Fines as penalties for convictions
- Debt for education
- Overpayments of benefits
- Retirement plans with tax benefits
- Specific condominium or cooperative housing charges
Despite listing financial obligations exempted from discharge, some debt types could only become dischargeable by request, including those affected by maliciousness or fraud. Sometimes, the creditors might require the court’s affirmation of the debt’s discharge before confirming their classification.
However, these concerns significantly vary based on the bankruptcy type. Some of these debts could be dischargeable, depending on whether the debtor is filing for Chapter 13 or 11 bankruptcy. Sometimes, the debtor could only receive debt discharge after fulfilling all court-ordered repayments. Still, the court could adjust discharge and repayment orders according to the debtor’s circumstances.
Discharge is not a guarantee
Usually, discharges are not absolute in any bankruptcy case. Sometimes, it depends on multiple factors involving the creditors and other parties in the case. Additionally, the court could deny discharges based on the bankruptcy code. Navigating options could be complex, requiring sound legal advice from an attorney specializing in bankruptcies. Seeking reliable counsel could also help determine potential solutions and address issues.