Debts discharged in bankruptcy

June 20, 2008 · Filed Under Bankrutpcy, Debt · Comment

The word bankruptcy discharge of debts means legal eradication of a debt. When a debt is discharged under bankruptcy, it can no longer be enforced against the debtor, however if any liens are put against the debtor, those debts will still survive in the bankruptcy filing process. If you are overwhelmed by your

existing debts, you can get your financial liabilities erased or completely wiped off. However, discharge of a debt is allowed for certain debtors and for certain cases. For example, non-individual debtors cannot get their debts discharged in chapter 7 bankruptcy. If a partnership or a corporate debtor is liquidating under chapter 11, and the business is stopped upon completion of the plan, the debtor cannot receive a discharge.

People who have committed fraud against the court by lying or by deceitful methods cannot get their debts discharged and will remain liable for pre-petition debts.

Certain kinds of debts are not discharged under chapter 7 bankruptcy.

These are:

1. Debts resulting from fraud, misuse of funds, embezzlement, or larceny

2. Debts arising out of false pretenses, including bogus representation, fraud or by presenting false financial statements.

3. Certain kind of tax debts

4. Debts resulting from the purchase of luxury merchandise or cash advances.

5. A debt resulted due to negligence of obligations to list in the bankruptcy schedules.

6. Alimony or child support, or debts resulting out of a divorce or separation

7. Student loans

8. Debts resulting from willful and malicious injury.

Debts that can be discharged under chapter 7 bankruptcy filing are as follows:

1. Auto accident claims