Debts Discharged in Bankruptcy

Part Two in Our Series on Debts Discharged Through Bankruptcy.  Pittsburgh Bankruptcy Lawyers Addressing the Common Question:  Are All Debts Discharged in Bankruptcy?

debts discharged when you file bankruptcy in Pittsburgh

You may have the right to have your debts discharged under the Bankruptcy Code.

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.

For your free consultation, call 412-925-8194

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?

debts discharged may include tax debts

Bankruptcy Discharge of Tax Debts

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.

Talk to bankruptcy attorney at no cost by calling 412-925-8194

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

WE ARE A DEBT RELIEF AGENCY.  WE HELP PEOPLE FILE FOR RELIEF UNDER THE UNITED STATES BANKRUPTCY CODE.

© 2017 Robleto Law, PLLC – Bankruptcy Lawyers in Pittsburgh.

Determine Which of Your Debts Can Be Eliminated in Bankruptcy

discharge in bankruptcy

Bankruptcy debts discharged in Pittsburgh

Bankruptcy Debts Discharged, Part One – Discharge of Student Loans, Credit Card Debt, Medical Debt and Criminal Fines Restitution in Bankruptcy

Bankruptcy debts discharged in any particular consumer case may depend on a number of factors. For people contemplating whether to file a bankruptcy case, the questions about whether certain debts may be discharged through bankruptcy are common. While debtors should discuss their individual circumstances with an experienced Pittsburgh bankruptcy lawyer, certain rules of thumb may help to determine whether a particular debt may be dischargeable in bankruptcy. This two-part series will explore whether certain kinds of debts can be discharged in bankruptcy.

FREE CONSULTATION – 412-925-8194

Are Student Loans Discharged in Pittsburgh Bankruptcy Debts Discharged?

Student loan debts are sometimes the most oppressive financial obligations for debtors in bankruptcy cases. Many people believe that student loans are not dischargeable in bankruptcy.  In fact, student loan obligations may be discharged in a bankruptcy case. While the United States Bankruptcy Code requires a showing of “undue hardship” to discharge most student loan obligations, student loans may still be discharged in a bankruptcy case. What constitutes “undue hardship” may depend on the governing case law in the court in which you file your bankruptcy case. In the region in which the Pittsburgh Bankruptcy Court is situate, the Brunner standard applies to define the meaning of “undue hardship” and imposes a three-part test which debtors must meet to have their student loans discharged.

Discharge of student loan obligations in bankruptcy must be done by filing an adversary proceeding, or a lawsuit, against the student loan creditor. That law suit will seek a determination that repayment of student loan debts constitutes an undue hardship and that the student loan obligation is dischargeable in bankruptcy. [perfectpullquote align=”right” cite=”” link=”” color=”” class=”” size=””]You may be eligible to discharge your student loan obligations. Talk to an experienced bankruptcy lawyer today[/perfectpullquote]

to determine if you can discharge your student loan debt.

Are Credit Card Obligations Bankruptcy Debts Discharged in Pittsburgh?

Generally speaking, credit card obligations are dischargeable in bankruptcy. Congress has emplaced certain protections in the Bankruptcy Code to prevent abuse by limiting discharge for cash advances in the days leading up to the filing of a bankruptcy case. Pittsburgh bankruptcy courts enforce the Bankruptcy Code with exacting attention. In like fashion, the Bankruptcy Code may bar discharge of late-incurred charges for luxury goods. Consumers must honestly discuss their credit card use before the filing of a case with their bankruptcy attorneys. Honest disclosure to your bankruptcy lawyer can often prevent unneeded difficulty in the entry of a discharge order.

FREE CONSULTATION – 412-925-8194

Open field of bankruptcy discharge

debts dischargeable in bankruptcy cases

Are Medical Debts Bankruptcy Debts Discharged?

Pittsburgh bankruptcy cases where the bankruptcy court enters a discharge order almost always result in medical debts being discharged.  Usually medical debts are unsecured obligations that do not enjoy priority protection under the Bankruptcy Code. For that reason, medical debts are dischargeable in most Pittsburgh bankruptcy cases.  While a particular obligation arising from medical debt could be non-dischargeable in bankruptcy, such exceptions are exceptional.  Discuss whether your medical debt may be discharged before you file your bankruptcy case in Pittsburgh with your own Pittsburgh bankruptcy lawyer.

Are Pittsburgh Criminal Fines or Restitution Orders Bankruptcy Debts Discharged?

Typically criminal fines and restitution are not discharged in bankruptcy cases.  States are empowered to exercise their police power and, with some exceptions, federal bankruptcy law under the United States Bankruptcy Code does not inhibit that exercise of the rights of states.  If you have question whether a particular debt might be dischargeable in your bankruptcy case, consult an experienced bankruptcy lawyer in Pittsburgh during a free initial consultation.

FREE CONSULTATION – 412-925-8194

Up Next: Bankruptcy Debts Subject to Discharge Including Mortgages, Car Loans, Tax Debts, Child Support and Alimony and Judgment Awards in Pittsburgh

Watch for our next installment in this series where we will continue to take up the question of exactly what kinds of debts can be discharged in a bankruptcy case. If you have any particular concerns about whether a certain debt may be discharged in a bankruptcy case, you should contact an experienced Pittsburgh bankruptcy lawyer today for a free initial consultation.  In Pittsburgh, call 412-925-8194 today.

(c) 2017.  Robleto Law, PLLC.  Robleto Law, PLLC is a law firm of bankruptcy attorneys based in Pittsburgh, Pennsylvania.  Our help may involve bankruptcy relief under the United States Bankruptcy Code. We are a debt relief agency. We help people file for relief under the United States Bankruptcy Code.