Exceptions to Discharge: Five Things to Know
Are you thinking about filing for consumer bankruptcy in the Oak Park area? If so, you are likely speaking with close friends or family members about the process, and you are likely searching for information about personal bankruptcy on the internet. In your discussions and web browsing research, you have likely come across information about debts that are non-dischargeable, or debts that fall into the category of “exceptions to discharge” under U.S. bankruptcy law. It is important to keep in mind that the most common types are usually dischargeable in a bankruptcy case, but it is nonetheless essential to determine whether you will be able to have your debts discharged in your bankruptcy case. What are exceptions to discharge? The following are five things you should know.
1. Exceptions to Discharge Means Non-Dischargeable Debts
Under the U.S. Bankruptcy Code, the term “exceptions to discharge” refers to debts that are non-dischargeable in a bankruptcy case. The law lists 19 exceptions to discharge, indicating that receiving a bankruptcy discharge does not allow for a discharge for any of those 19 types of debts.
2. Student Loans are Listed But There is an Exception to the Exception
Student loans are listed as a type of non-dischargeable debt, but the U.S. Bankruptcy Code identifies an exception to the existing exception of student loans: the law indicates that student loans can be discharged when paying them “would impose an undue hardship on the debtor and the debtor’s dependents.”
3. Exceptions to Discharge Apply in All Types of Consumer Bankruptcy Cases
The exceptions to discharge listed under the U.S. Bankruptcy Code will apply to all types of consumer bankruptcy. Accordingly, you should not expect debts identified as non-dischargeable through one type of bankruptcy to be dischargeable through another type of bankruptcy.
4. Debts Incurred Through Fraud or by Other Illegal Means are Always Non-Dischargeable
While there are various types of non-dischargeable debts and some of them can be quite complicated, any debts that are incurred through fraud or by any other unlawful means will always be non-dischargeable in a bankruptcy case.
5. A Bankruptcy Lawyer Can Evaluate Your Debts and Clarify Whether They Can be Discharged in Your Bankruptcy Case
If you are unsure about whether your debts can be discharged, you should seek advice from a bankruptcy lawyer.
Contact an Oak Park Consumer Bankruptcy Attorney
Do you have questions about exceptions to discharge, or do you need to have an attorney look at your debts to determine whether they will be eligible for discharge if you file for bankruptcy? It is critical to keep in mind that bankruptcy will usually only benefit you if you are able to have the majority of your debts discharged. While there are other benefits to bankruptcy, such as avoiding foreclosure through a Chapter 13 bankruptcy, most people seek bankruptcy protection in order to ultimately receive a discharge at the end of their case. As such, you should speak with one of our Oak Park consumer bankruptcy attorneys about your circumstances and to determine the status of your debts. Contact the Emerson Law Firm to learn more about how our firm can assist you.
See Related Blog Posts:
Digital Assets and Bankruptcy: Things to Consider
What Questions Should I Ask a Bankruptcy Lawyer?
1. Exceptions to Discharge Means Non-Dischargeable Debts
Under the U.S. Bankruptcy Code, the term “exceptions to discharge” refers to debts that are non-dischargeable in a bankruptcy case. The law lists 19 exceptions to discharge, indicating that receiving a bankruptcy discharge does not allow for a discharge for any of those 19 types of debts.
2. Student Loans are Listed But There is an Exception to the Exception
Student loans are listed as a type of non-dischargeable debt, but the U.S. Bankruptcy Code identifies an exception to the existing exception of student loans: the law indicates that student loans can be discharged when paying them “would impose an undue hardship on the debtor and the debtor’s dependents.”
3. Exceptions to Discharge Apply in All Types of Consumer Bankruptcy Cases
The exceptions to discharge listed under the U.S. Bankruptcy Code will apply to all types of consumer bankruptcy. Accordingly, you should not expect debts identified as non-dischargeable through one type of bankruptcy to be dischargeable through another type of bankruptcy.
4. Debts Incurred Through Fraud or by Other Illegal Means are Always Non-Dischargeable
While there are various types of non-dischargeable debts and some of them can be quite complicated, any debts that are incurred through fraud or by any other unlawful means will always be non-dischargeable in a bankruptcy case.
5. A Bankruptcy Lawyer Can Evaluate Your Debts and Clarify Whether They Can be Discharged in Your Bankruptcy Case
If you are unsure about whether your debts can be discharged, you should seek advice from a bankruptcy lawyer.
Contact an Oak Park Consumer Bankruptcy Attorney
Do you have questions about exceptions to discharge, or do you need to have an attorney look at your debts to determine whether they will be eligible for discharge if you file for bankruptcy? It is critical to keep in mind that bankruptcy will usually only benefit you if you are able to have the majority of your debts discharged. While there are other benefits to bankruptcy, such as avoiding foreclosure through a Chapter 13 bankruptcy, most people seek bankruptcy protection in order to ultimately receive a discharge at the end of their case. As such, you should speak with one of our Oak Park consumer bankruptcy attorneys about your circumstances and to determine the status of your debts. Contact the Emerson Law Firm to learn more about how our firm can assist you.
See Related Blog Posts:
Digital Assets and Bankruptcy: Things to Consider
What Questions Should I Ask a Bankruptcy Lawyer?
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