What You Need to Know About Dischargeability in Bankruptcy
Dischargeability in bankruptcy is just one of the many complex dynamics of the process. So, in addition to all of the other nuances, definitions, and strict US Bankruptcy Code you'll need to decipher, dischargeability in bankruptcy is another prong to understand. Yes, as the root term implies, it has to do with debts qualifying for bankruptcy. But there's so much more to unravel.
Eliminating your debt with bankruptcy means having a clear roster of eligible debts. Which creditors are dischargeable in bankruptcy? You'll be surprised to learn that you might not be able to walk away from all of your bills.
If you have bankruptcy on your mind, you're likely already stressed about your finances. And the thought of diving into all the bankruptcy code requirements, including learning about dischargeability in bankruptcy, can be complex and overwhelming. However, if you're reading this now, you're in luck. DoNotPay can help provide some clarity about dischargeability in bankruptcy and even help you file when you're ready to take the next step.
What Is Bankruptcy?
You may not completely understand dischargeability in bankruptcy, but you certainly know what bankruptcy is. And despite some of the stigma that comes with declaring bankruptcy, the program is intended to provide financial relief when debts become overwhelming. And let's face it; life can throw some financial curveballs that are avoidable to dodge. If you're considering a bankruptcy, it likely means you need it, and you fall into the category of individuals it was designed to help.
What Is the Definition of Dischargeable Debt?
So, what is dischargeable debt in terms of dischargeability in bankruptcy, anyway? Dischargeable debt is any debt that can be eliminated upon filing for bankruptcy. If the bill is dischargeable, you can walk away from it without ever being liable for repayment. Some examples of dischargeable debts, in most cases, include:
- Medical bills
- Credit card debt
- Personal loans
- House payments
- Vehicle payments
Alternatively, some expenses that may not be deemed dischargeable. And there are other factors and circumstances to understand when it comes to deciphering dischargeability in bankruptcy.
When Does a Discharge in Bankruptcy Occur?
Dischargeability in bankruptcy is subject to timing, depending on which type of bankruptcy you're filing. For example, when liquidating assets under Chapter 7, the court will usually agree to the suggested discharge accounts immediately, based on the complaint filing expiration or 60 days after the first 341 meeting. Under Chapters 11, 12, and 13, the court typically grants the discharge of debts after the filer completes all payments under the restructuring plan.
The important dates you have to remember after the 341 meetings:
|30 Days||You have to perform what has been stated in your Statement of Intentions. Surrender any property you said you have not been keeping and reaffirm any debts you promised to pay after bankruptcy|
|60 Days||Creditors must put forward their objections to your bankruptcy. Including debts incurred through fraudulent means, those you had no intention to pay in the first place, or those incurred illegally.|
|90 Days||Creditors must file a proof of claim with the bankruptcy court.|
This shows the length of time it would take you to process bankruptcy and how often you have to be in contact with creditors and your lawyer.
How is a Discharge in Bankruptcy Determined?
Unless there is some litigation or objections to the accounts listed under the discharge, you'll more than likely be able to wipe out the accounts you specify. And official dischargeability in bankruptcy isn't official until the Federal Rules of Bankruptcy Procedure clerk in bankruptcy court mails the order of discharge. Everyone receives a copy, including you and:
- The US Trustee
- The US Trustee's Attorney (if applicable)
- Your Attorney (if applicable)
Can a Discharge in Bankruptcy Be Revoked?
It's important to also understand revocability when it comes to discharges. Dischargeability in bankruptcy isn't always set in stone. And the presiding court can revoke dischargeable debts if there are allegations of fraud, impropriety, or gross misstatement of assets. A revocation can occur within the first year of filing and lead to an investigation audit and final determination.
Are Dismissals and Discharges the Same Thing?
Bankruptcy is complicated because some of the guidelines and definitions are hard to understand for laymen. Dischargeability in bankruptcy, for example, should not be confused with dismissals. When a bankruptcy court grants your discharge order, for example, it means your obligation to repay is canceled. If the court, however, enters a dismissal order instead, it means your bankruptcy case is ending without any of your debts being eliminated at all.
What You Need to File for Bankruptcy on Your Own
Now that you have a general understanding of dischargeability in bankruptcy, you're ready to execute the next steps. But filing for bankruptcy on your own is going to be complicated. It's best to first gather your supporting documentation, your current credit report, and identification information. You'll also need to include everything you can about your finances, including:
- Bank statements
- Vehicle titles or loan documents
- Proof of income (at least six months)
- Past tax returns (at least two years)
- Property assessment documents (leases, appraisals, mortgage, etc.)
Once you're confident you have all of your documents prepared, you can then go to bankruptcy court and file your case. The next steps, including required courses, assignment of a trustee, and requests for additional information, will follow. But there is an easier way to file and verify dischargeability in bankruptcy.
Solve Your Dischargability and Bankruptcy Filing Dilemma with DoNotPay
Imagine having a partner who understood all the bankruptcy filing requirements and dischargeability in bankruptcy applications. What if you had someone to file for you and sort through all the complicated government red tape to get you the financial relief you deserve? You do. And DoNotPay makes it super-easy to get started.
How to file for bankruptcy using DoNotPay:
If you want to file for bankruptcy but don't know where to start, DoNotPay has you covered in 5 easy steps:
- Search for File for Bankruptcy on DoNotPay.
- Put together a list of your debts, expenses, and assets. If you need help accessing information like your credit report, DoNotPay can help you get your report.
- Let DoNotPay walk you through your bankruptcy options and help you determine whether a Chapter 7, Chapter 12, or Chapter 13 bankruptcy is right for you.
- DoNotPay will then help find the best credit counseling course near you, which you need to complete before filing your bankruptcy forms.
- Lastly, DoNotPay will gather all of the forms you need (including available fee waivers) and help you locate your nearest bankruptcy court. All you have to do is complete the required forms, prepare your filing fee, and file the application with your local court.
And that's it! Once done, the court will give you:
- Your bankruptcy case number
- The name of your bankruptcy trustee
- The date, time, and location of your meeting with your trustee
At this point, your case has been filed! Congrats! The automatic stay now protects you from all debt collectors. Your trustee will then contact you for further financial documents you will need to provide. Make sure to attend your meeting as well as complete the post-filing bankruptcy debtors course!
Why DoNotPay Is the Most Convenient Way to Dischargeability in Bankruptcy
Bankruptcy is tough to navigate all on your own, especially when you aren't clear in understanding the various requirements, guidelines, and timelines. Dischargeability in bankruptcy, and all-things filing, are convenient and hassle-free with DoNotPay because our product makes it:
- Fast—You don't have to spend hours trying to understand ambiguous terms and requirements.
- Easy—You don't have to struggle to fill out tedious forms or stay on top of rigorous timelines or follow-up steps.
- Successful—You can rest assured knowing we'll represent your best interest and make the best case for you, every step of the bankruptcy process.
DoNotPay Can Help With Way More Than Bankruptcy Filing
If DoNotPay can shed light on complicated topics like dischargeability in bankruptcy, you'll love what else our product line can help you tackle.
- Submit an inflation pay request
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- Get a power of attorney
- File breach of contract
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Don't get lost in the details of dischargeability in bankruptcy. Instead, let DoNotPay handle discharge orders bankruptcy filing for you!