Any person filing for Chapter 7 wants to have all debts to be discharged if possible. In general, the rule says that liabilities are eliminated if they were made before a person has made a formal application for bankruptcy. Filing for bankruptcy eliminates a debtor’s liability on a financial obligation or claim. But certain financial obligations that endure bankruptcy just like debts or loans with collateral.
The general rule that all debts can be wiped out has a few crucial exclusions. As an example, a debt collector can try to request for denial of a debt discharge by means of the provisions of 11 U.S.C. 523. Creditors may seek for the debt discharge exclusion by making a claim that the debtor has committed fraud or falsified record to obtain the loan or debt. If the court does not discharge any financial obligation, the debt collector has to be repaid and this will create a considerable bearing on a person’s bankruptcy filing pursuits.
When the debtor’s debts have become extremely arduous, Bankruptcy Law wipes out debts, however, it also provides a few special exemptions to be sure that this alleviation is provided only to the “honest but unfortunate debtor.”. The Bankruptcy Code has some debt discharge exceptions. A financial obligation may not be discharged for the reason that is was created by means of any form of dishonesty or it the debt was created in accordance to public policy.
Examples of financial obligations that are not dischargeable because of unjust action are those obtained by means of fraud or any form of illegal activity. The non-dischargeable debts attributable to public policy include educational loan, child support, alimony, customs duties and taxes, government fines, penalties, and forfeitures, unscheduled claims, and certain debts that endure a preceding bankruptcy case. Whichever claim that falls within one of these exclusions are not dischargeable.
Dischargeability of debts in the presumption of fraud was stretched out in terms of making use of credit cards by invoking that any luxury good or service paid for using credit card that amounts to more than $500 within 90 days before bankruptcy filing is non-dischargeable. In addition, many courts have ruled some credit card debts to be not dischargeable because each time a debtor charges something to a credit card it implies that the person is capable of paying and will pay for the charged amount.
Aside from creditors pursuant to 523, the pursuant of U.S.C. 727 by a creditor or the trustee may result in a court?s dismissal of a final discharge in bankruptcy, regardless of its nature, if the debtor fails to sufficiently clarify how any asset was lost, disobeys court orders, withholds estate records, acts or forbears an act with a view to obtain an advantage, intentionally makes a wrongful claim, oath, or account in a bankruptcy case, fails to preserve or falsifies financial records, and conceals or abolishes the debtor’s property subsequent to bankruptcy filing or within the period of one year before the date of filing, with a purpose to deceive or get in the way of a creditor. A debtor must also know that causing unwarranted delay to the court hearings, debt that was unlisted in the schedule, or not paying fees and other mandatory payments can also be basis for dismissal of debt discharges.[youtube:Tit3uuSzSP8?fs=1;Video On [http://www.bankruptcy-attorneysanantonio.com/san-antonio-bankruptcy-attorney:San Antonio Bankruptcy];http://www.youtube.com/watch?v=Tit3uuSzSP8?fs=1&feature=related]
Do you want more thorough facts about San Antonio Bankruptcy Attorney. Then proceed to the Ama Guzo’s suggested site directly at San Antonio Chapter 13 Bankruptcy. Here you will discover several more articles on bankruptcy related topics.