Debt Discharge in a Florida Bankruptcy
Resolving Bankruptcy Matters in Orlando, FL Since 1990
If you are considering filing for bankruptcy, you are going to want to
bankruptcy discharge works and what it can and cannot do for your debt. At
Richard A. Heller, P.A., our Orlando bankruptcy attorneys have 75 years of combined experience,
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What is the bankruptcy discharge?
The bankruptcy discharge releases the debtor from personal liability for
certain types of debts. This means that once a debt has been discharged
or "wiped out," the debtor is no longer required to pay that
debt. What's more, the discharge itself acts as a permanent order
that prohibits creditors from taking any form of debt collection action
on discharged debts.
This means a creditor cannot commence or continue taking any legal actions,
nor any communications with the debtor in the form of letters, phone calls,
or emails etc.
When will the discharge occur? The timing on a discharge varies depending
upon which Chapter of bankruptcy the debtor files under. In
Chapter 7 case, the discharge is usually granted very quickly and about 60 days
following the 341 meeting. Since
Chapter 13 provides for a repayment plan over the course of 3 to 5 years, the discharge
typically occurs around 4 years of filing.
Are all debts discharged?
Not all debts can be discharged. Generally, the exceptions to a discharge
(debts that cannot be discharged) include:
- Child Support
- Certain Tax Obligations
- Student Loans
- Victim Restitution
- Court Ordered Fines
In Chapter 7 cases, a discharge may be denied if the debtor fails to produce
the required tax documents, or if they fail to complete a course on financial
management, or if they attempt to defraud creditors. With Chapter 13 cases,
the case is usually discharged once the debtor has completed all of their
payments under the repayment plan.
To learn more,
contact an Orlando bankruptcy attorney from Richard A. Heller, P.A. to arrange your
free consultation - (407) 501-4052!