A Discharge of Debts Can Give You a Fresh Financial Start
A discharge of debts can give debtors in the Portland, OR, area a fresh start financially. Attorney Ted Troutman has spent more than 30 years practicing bankruptcy and business law, and can help guide you through the process. Though filing bankruptcy can discharge most debts, some debts cannot be discharged. Additionally, creditors can contest the discharge of certain debts, and a judge may rule such debts non-dischargeable. It is important to work with an attorney who has a full understanding of bankruptcy law and can help determine what options are right for you. Contact the Troutman Law Firm today to schedule your free consultation.
In general, consumers who file Chapter 7 bankruptcy can have most, if not all, of their debts discharged. A discharge of debts is a permanent injunction that eliminates the ability of creditors to attempt to collect any discharged debts from the debtor. Dischargeable debts include almost any debts incurred prior to filing for bankruptcy. Some common dischargeable debts include:
- Credit card debt, including late fees
- Medical bills
- Personal, non-secured loans from friends, family, or an employer
- Past-due utility bills
- Most car accident claims
- Business debts
- Past-due rent and other money owed as required in a lease agreement
There are exceptions to these debts that can make them non-dischargeable. For example, if an auto accident claim is the result of your drunk driving, that debt will not be discharged. Debts incurred under the basis of fraud are also non-dischargeable.
A discharge of debts is a permanent injunction that eliminates the ability of creditors to attempt to collect any discharged debts from the debtor.
There are a number of debts that are non-dischargeable. Any debts incurred after filing for bankruptcy are considered non-dischargeable. Other non-dischargeable debts may include:
- Child or spousal or other family support payments
- Debts related to personal injury or death as a result of drunk driving or driving while intoxicated
- Student loan debt, except in cases of extreme hardship (rare)
- Most tax debt
- Credit purchases of luxury items or loans in excess of $1,150 within 60 days of filing for bankruptcy
- Debts from embezzlement
- Debts owed in a divorce settlement
Denial of Debt Discharge
A judge can deny the discharge of all debts or particular individual debts. He or she may deny the discharge of all debts if you do not meet the requirements to receive a discharge of debts, or if an adversary complaint (civil lawsuit) is filed contesting the discharge of debts. The denial of the discharge of a particular debt may be due to the fact that the particular debt is one of the non-dischargeable debts listed above. A particular debt may also be denied for discharge if a creditor files an adversary complaint to deny the discharge of that specific debt.
Why Work with an Attorney?
Bankruptcy law is complex, so it is important to work with an attorney who has knowledge of this area of the law. Ted Troutman will meet with you and thoroughly review your income, debts, and other expenses to help determine if bankruptcy is the right choice for your situation. We can also address any questions or concerns you may have about the process. Our team will handle the paperwork and filing processes to begin to ease your stress even before your case is finalized.
Schedule Your Consultation
If you are considering filing for bankruptcy, but are unsure if you qualify, contact the Troutman Law Firm today to schedule your free consultation. We can help you navigate this often complex process.
For any questions, inquiries, or to set up a consultation with us, please fill out the form below.
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