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Archive for the ‘Discharge of Debts’ Category

What Debts Are Not Dischargeable in a Texas Bankruptcy?

December 13th, 2019 at 9:46 am

TX bankruptcy attorney, TX chapter 7 lawyerFiling for bankruptcy is often the last resort for many people. If you successfully file for bankruptcy and your debts are discharged, it can affect your current and future finances for years, which is why people do not typically get a bankruptcy unless they absolutely have to. For most forms of bankruptcy, receiving a discharge of your debts is typically the end goal. Most debts can be discharged or forgiven in a bankruptcy, but there are certain types of debts that either cannot be discharged or will not be discharged based on certain circumstances.

Student Loans

When it comes to student loan debt, it is almost never automatically discharged in a bankruptcy. If you are looking to have your student loans forgiven, you must prove to the court that making your student loan payments would cause you undue hardship. To do this, you have to prove that making your student loan payments would not allow you to maintain a minimal standard of living, you will likely be in a tight financial situation for the remainder of your student loan repayment period and you have made a decent number of payments in good faith on your loans.

Taxes

For the most part, federal, state and local taxes are not dischargeable in bankruptcy. However, there are certain situations in which you may be able to have your tax debts forgiven if you file for a Chapter 7 bankruptcy. To do this, you must prove that all of the following five criteria are true:

  • The tax return in question was due at least three years ago;
  • The tax return was filed at least two years ago;
  • The IRS assessed your tax at least 240 days prior to the filing of the bankruptcy;
  • Your tax return was not fraudulent; and
  • You are not guilty of tax evasion.

Domestic Support

Domestic support that you owe to a spouse or child will never be discharged in a bankruptcy. If you have a legal obligation to pay spousal support or child support payment, you will still be held to that obligation after a bankruptcy.

Consult With a San Antonio, TX Bankruptcy Discharge Attorney

Getting a bankruptcy, whether that bankruptcy is a Chapter 7 or Chapter 13, can be a fresh start for most because of the ability to have your debts discharged or forgiven. If you have certain specific types of debt, you may not be able to have those discharged in a bankruptcy. At the Law Offices of Chance M. McGhee, we can help you analyze the types of debt that you are in and determine whether or not you would be able to have those debts discharged if you were to file for bankruptcy. Let our Kerrville, TX bankruptcy discharge lawyers help you make the right decisions for your financial future. Call our office today at 210-342-3400 to schedule a free consultation.

 

Sources:

https://www.thebalance.com/what-is-non-dischargeable-in-a-bankruptcy-case-316130

https://www.investopedia.com/terms/n/nondischargeable_debt.asp

https://www.law.cornell.edu/uscode/text/11/523

Can My Texas Bankruptcy Discharge Be Denied?

June 28th, 2019 at 9:58 pm

Texas bankruptcy attorney, Texas chapter 7 lawyer, Texas chapter 13 lawyer One of the last things that happens in the bankruptcy process is having your debts officially discharged, or forgiven. In other words, a discharge is the official release that you get when you are no longer personally liable for specific debts after you file for bankruptcy. A discharge requires all creditors to permanently stop any collection action against discharged debts, including legal action and phone calls or letters sent to your home. Discharge is the main goal of most people who file for bankruptcy, but is there is a possibility that your discharge could be denied?

Reasons for a Discharge Denial

Most of the time, a person who files for a Chapter 7 or Chapter 13 bankruptcy will have his or her case end with a discharge. In some cases, however, you can receive a denial for your discharge, which can be both stressful and debilitating to some. Here are a few reasons why your discharge may be denied:

  • You tried to hide property. If you own certain property that is considered by the courts to be non-essential, such as multiple real estate holdings, multiple vehicles or other financial assets, you could be required to liquidate those to help pay some of your debt. If you are not honest about your property, your bankruptcy discharge could be denied.
  • You lied. In a bankruptcy, you are required to be honest and transparent on your bankruptcy forms and during any court hearings or meetings. You have to be truthful about your income, your assets and anything else having to do with your ability to pay your debts. If not, you could be denied a discharge of your debts.
  • You did not disclose a prior bankruptcy case. On your bankruptcy forms, you will be asked if you have previously filed for bankruptcy. You are required to be truthful about this question. If you received a Chapter 7 bankruptcy discharge within the past eight years or a Chapter 13 bankruptcy discharge within the past six years, you may be denied an additional discharge.

Contact a Knowledgeable Boerne, TX Bankruptcy Lawyer Today

A discharge is what you expect to receive when you file for bankruptcy — it is the whole reason for filing in the first place. If you spend time and money to go through the bankruptcy process only to be denied a discharge, it can be frustrating, but a New Braunfels, TX bankruptcy attorney can help make sure this does not happen. At the Law Offices of Chance M. McGhee, we will help you throughout the bankruptcy process and ensure your case goes smoothly to obtain a discharge of your debts. Call our office today at 210-342-3400 to schedule a free consultation.

 

Sources:

https://www.thebalance.com/can-your-bankruptcy-discharge-be-denied-316324

https://www.thebalance.com/how-to-lose-your-bankruptcy-discharge-316312

https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/discharge-bankruptcy-bankruptcy-basics

Call today for a FREE Consultation

210-342-3400

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