What Debts are discharged in bankruptcy:
1. Credit Cards
Credit Cards are the vast majority of debts that is discharged under Chapter 7 bankruptcy. Unless the creditor claims that the purchase is secured by collateral, or creditor claims fraud or some other reason that they believe the debt should not be discharged your credit card debt will be eliminated. But remember, if you used the card shortly before filing the creditor may claim an abuse or fraud claim. So if you are planning to file for bankruptcy stop using those cards.
2. Medical Bills
The bankruptcy code allows for your medical bills to be discharged at the end of your Chapter 7 Bankruptcy Case. This is a powerful tool . Many individuals have found them selves with financial difficulties because of emergency medical procedures. So let me say it again MEDICAL BILLS CAN BE DISCHARGED IN BANKRUPTCY.
3. Lawsuits and Judgments
Many civil suits end with a money judgment against the loosing party. These judgments are usually dischargeable in bankruptcy this includes wage garnishments and judicial liens. There are exceptions to the rule. For example, if the act was willful and malicious meaning you intended to inflict a specific injury to a person or property the debt is not dischargeable. Or if the judgment was in result of fraud or misrepresentation.
4. Car Accident Debts
Most car accident debts are dischargeable. However, there are exceptions for example if the accident was the result of a willful or malicious act or was a drunk driving accident.
5. Obligations Under Leases and Contracts
These debts are obligations under a contract such as a contract to buy products or a contract to perform an obligation (painting a house). If you do not perform your end of the bargain the other party may sue you for breach of the contract and receive damages. Under the bankruptcy code these obligations are usually dischargeable. However, if the lease or contract will produce money to pay your creditors the trustee may not discharge the contract. Furthermore, if you have a lease or obligation that is incurred after bankruptcy you will be liable to pay for those obligations. For example, breaching a lease and remaining in the property after the bankruptcy has been filed.
6. Personal Loans
These are loans you receive in exchange for a promissory note. These debts are dischargeable unless the creditor can prove some instance of fraud, malicious intent or misrepresentation.
Contact the Law Offices of Rami N. Nabi to see how bankruptcy may be able to help you. www.oc-0bankruptcylaw.com