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Discharging debts is the final step and goal of any bankruptcy proceeding. When debts are discharged, you are no longer legally obligated to pay them, and creditors are no longer allowed to try and collect. For Chapter 7, usually all debts are discharged within 4 months of the filing, although this can be longer if your creditors, a trustee, or the U.S. Senate file an objection and accuse you of bankruptcy fraud. ForChapter 11 or Chapter 13, debts are discharged when you have finished the repayment plan.

We understand the difficult situation that you are in and will do our best to relieve your burden and make your life easier. A San Antonio bankruptcy attorney at our firm may be able to help you get your finances back on track.

Non-Dischargeable Debts

Not all debts are able to be discharged. Regardless of whether you file for bankruptcy, there will be some payments that you will be required to make. Most non-dischargeable debts are the same for Chapter 7 and 13, although there are a few exceptions. Some non-dischargeable debts are:

  • Unlisted Debts in the Bankruptcy Claim
  • Alimony
  • Child Support
  • Certain Taxes
  • Long Term Secured Debts, e.g. Mortgages
  • Educational/Student Loans
  • Debts Acquired Paying Non-Dischargeable Debts
  • Debts from DUI Accidents Resulting in Injuries or Death
  • Costs of Criminal Proceedings
  • Restitution for Willful or Malicious Injuries
  • Fraudulent Debts
  • Valuable Items Exceeding the Personal Property Value Limit, i.e. Important Things You Don’t Want Liquidated

Some debts that are dischargeable under Chapter 13 that are non-dischargeable under Chapter 7 are:

  • Restitution for Willful or Malicious Property Damage
  • Property Settlements from a Divorce or Legal Separation

There are also some exceptions to dischargeable and non-dischargeable debts. These are:

  • Creditors Can Collect the Lien on a Secured Debt
  • Reaffirmation of Debt, i.e. Choosing Not to Discharge
  • Voluntary Repayment, Usually for Loans by Family Members or Friends

Hardship Discharge

It sometimes happens that people who file for bankruptcy and have a repayment plan are unable to keep up with those payments. In this situation, the person can file for a hardship discharge, which will discharge debts that are part of a repayment plan, although it does not apply to Chapter 7 non-dischargeable debts. Courts only grant hardship discharges if the individual meets the following three conditions:

  1. Inability to pay is beyond the control of the individual and is not the fault of the individual.
  2. The hardship discharge cannot occur before the individual has paid creditors the amount that they would have received from a Chapter 7 bankruptcy.
  3. It is not possibly to modify the repayment plan to fit the new economic circumstances.