New Information on Debts That Bankruptcy Cannot Discharge
If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley, which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts.
Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable
The recent Bartenwerfer case involved a debtor attempting to discharge debts owed due to a spouse’s fraud in a house renovation and sale. In a 9-0 decision, the Court made clear that U.S. bankruptcy law “precludes [a debtor] from discharging in bankruptcy a debt obtained by fraud, regardless of her own culpability.” In other words, even if a debtor was not responsible for the fraudulent act or omission that resulted in the debt, if the debtor is otherwise responsible for that debt (such as in a marriage), then that debt cannot be discharged in a bankruptcy case. This decision will be applicable to all future bankruptcy cases.
Students Loans Can Be Discharged in Bankruptcy, and New Guidance Will Apply
While student loan debts were always dischargeable in certain circumstances, new guidance means that discharging student loans in bankruptcy will likely be much easier. Many people are under the misconception that student loans are non-dischargeable, but this is not the case.
Certain Types of Debts Cannot Be Discharged
There are some kinds of debts that are never eligible for discharge. For example, family support debt — such as child support or spousal support owed — cannot be discharged in a bankruptcy case no matter what the circumstances might be. Certain tax debts are not eligible for discharge, either, and certain debts you owe because you caused another person’s injuries in a drunk driving crash, for example, are not typically dischargeable.
Many Types of Consumer Debts are Dischargeable
For the most part, the majority of debts that plague consumers are dischargeable under U.S. bankruptcy law. For example, the following types of debts can usually be discharged in a consumer bankruptcy case:
Contact a Bankruptcy Attorney in Oak Park Today
If you have questions about consumer bankruptcy or specific inquiries about dischargeable and non-dischargeable debts, an attorney at our firm can assist you. Do not hesitate to get in touch with an experienced Oak Park bankruptcy attorney at our firm to find out more about your options and what we can do to help. Contact the Emerson Law Firm today for more information.
See Related Blog Posts:
Checklist for a Chapter 7 Bankruptcy
Learning About Recent Consumer Bankruptcy Trends
Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable
The recent Bartenwerfer case involved a debtor attempting to discharge debts owed due to a spouse’s fraud in a house renovation and sale. In a 9-0 decision, the Court made clear that U.S. bankruptcy law “precludes [a debtor] from discharging in bankruptcy a debt obtained by fraud, regardless of her own culpability.” In other words, even if a debtor was not responsible for the fraudulent act or omission that resulted in the debt, if the debtor is otherwise responsible for that debt (such as in a marriage), then that debt cannot be discharged in a bankruptcy case. This decision will be applicable to all future bankruptcy cases.
Students Loans Can Be Discharged in Bankruptcy, and New Guidance Will Apply
While student loan debts were always dischargeable in certain circumstances, new guidance means that discharging student loans in bankruptcy will likely be much easier. Many people are under the misconception that student loans are non-dischargeable, but this is not the case.
Certain Types of Debts Cannot Be Discharged
There are some kinds of debts that are never eligible for discharge. For example, family support debt — such as child support or spousal support owed — cannot be discharged in a bankruptcy case no matter what the circumstances might be. Certain tax debts are not eligible for discharge, either, and certain debts you owe because you caused another person’s injuries in a drunk driving crash, for example, are not typically dischargeable.
Many Types of Consumer Debts are Dischargeable
For the most part, the majority of debts that plague consumers are dischargeable under U.S. bankruptcy law. For example, the following types of debts can usually be discharged in a consumer bankruptcy case:
- Medical debt;
- Credit card debt;
- Personal loan debt;
- Auto loan debt; and
- Mortgage debt.
Contact a Bankruptcy Attorney in Oak Park Today
If you have questions about consumer bankruptcy or specific inquiries about dischargeable and non-dischargeable debts, an attorney at our firm can assist you. Do not hesitate to get in touch with an experienced Oak Park bankruptcy attorney at our firm to find out more about your options and what we can do to help. Contact the Emerson Law Firm today for more information.
See Related Blog Posts:
Checklist for a Chapter 7 Bankruptcy
Learning About Recent Consumer Bankruptcy Trends
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