Part Two in Our Series on Debts Discharged Through Bankruptcy. Pittsburgh Bankruptcy Lawyers Addressing the Common Question: Are All Debts Discharged in Bankruptcy?
Pittsburgh: Take Charge of Your Bankruptcy Discharge!
Whether certain kinds of debts may be discharged through a bankruptcy case is a hot topic for many debtors. Making the decision to file a bankruptcy case is often a challenging one. People in financial trouble want to know whether filing a bankruptcy case will allow them to break free from their debts.
In many cases, debtors may be particularly concerned with the elimination of certain classes of debts. This second in a two-part series continues our look at the dischargeability of various debts. If you have questions concerning the discharge of debt, you should discuss your particular circumstances with an experienced bankruptcy lawyer.
Debts Included in Bankruptcy Discharge
The United States Bankruptcy Code is embodies various policy determinations which balance the interests of debtors in getting a fresh start against the interests of creditors in being paid the debts that they are owed. For instance, domestic support obligations and many kinds of tax debts are typically outside the scope of a discharge and those kinds of debts are also accorded “priority” status so that they are paid ahead of other kinds of claims. In a continuation of our earlier article on bankruptcy discharge, Pittsburgh bankruptcy lawyers will consider wither car loans, tax debts, mortgage obligations and various other kinds of debt may be discharged in bankruptcy.
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Are Car Loans Dischargeable in Bankruptcy?
As many in Pittsburgh have discovered, car loans are dischargeable in bankruptcy. Often however, the catch is that, if you want to keep a vehicle that you still owe money on, you’ve got to payoff the loan balance. For many people, that means simply continuing to pay their car loan payments before, during and after bankruptcy. For others, it means curing their pre-bankruptcy arrearages and then paying the remainder of their car loans after the bankruptcy case closes.
Another issue that sometimes arises relating to vehicle loans in bankruptcy cases when debtors own cars that just aren’t worth what they owe upon them. When that happens, bankruptcy debtors have a few choices. First, a debtor in that situation can simply surrender his or her vehicle and make no further payments. Second, a debtor could “reaffirm” the car payment, essentially allowing, it to pass through the bankruptcy case unaffected. Third, the debtor can often retain the vehicle and continue to pay as agreed. The difference between the second and third options is that, after a discharge, a debtor is no longer personally responsible to repay the car loan. However, if a debtor in that situation does not repay, the lender maintains its right to repossess the vehicle. If you want to save your car through bankruptcy, know you rights. Talk to your bankruptcy lawyer about your particular situation to determine which may be the right choice for you.
Are Tax Debts Discharged in Pittsburgh Bankruptcy Cases?
Tax debts in bankruptcy cases require special consideration and even experienced bankruptcy lawyers must pay close attention to discharge of tax debts. Generally, taxes are entitled to priority treatment, meaning they are paid ahead of other lower priority claims. Moreover, many tax obligations are not dischargeable in bankruptcy. However, in some situations, you may be able to discharge your taxes in a bankruptcy case. Talk to your bankruptcy lawyer about your particular situation to find out if you can discharge your taxes. Discharging your taxes in bankruptcy may be the foundation of your fresh start.
Are Child Support, Spousal Support, Alimony and Domestic Support Obligations of Pittsburgh Courts Discharged in Bankruptcy?
Generally, child support and other domestic support obligations are not debts discharged in a bankruptcy case. Still, there is distinction between a domestic support obligation and an equitable distribution claim following a divorce. Certain claims arising from a divorce may be dischargeable even when other are not. Your Pittsburgh bankruptcy lawyer can provide you with advice about whether your divorce debts can be discharged in bankruptcy. Don’t trust amateur advice, every situation is different. Call today for your free initial consultation.
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Are Mortgage Debts for Pittsburgh Properties Discharged in Bankruptcy?
Pittsburgh homeowners may be surprised to learn that the loans for their mortgages are often debts discharged in bankruptcy. It is important to recognize that the loan related to the mortgage and the mortgage lien are distinct concepts. For that reason, it is possible for a debtor to receive a discharge relieving her of any personal obligation to continue to make payments, while at the same time leaving the mortgagee’s lien rights intact. The practical impact of discharging the obligation without addressing the lien is that the secured creditor may still be privileged to seek recourse in its collateral (that is, foreclose and sheriff’s sale). If you really want to protect your home though a bankruptcy case, work with your bankruptcy attorney to develop a bankruptcy plan that will save your home.
Debts Discharged May Depend on Many Factors
Pittsburgh bankruptcy lawyers find that the debts swept up in a bankruptcy discharge often vary from case to case. For that reason, every bankruptcy case is unique and requires its own analysis. Some bankruptcy lawyers offer free initial consultations. Don’t go to a bankruptcy lawyer who may charge you a fee for a discussion about a bankruptcy case that you may never file. Talk to an experienced Pittsburgh bankruptcy lawyer today about which debts you can eliminate in bankruptcy.
Call now for your free initial consultation – 412-925-8194
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