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Most debt is dischargeable. Secured debts such as house mortgages and car loans are generally
unaffected as long as a
client remains
current on payments.
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Debt that can be wiped out in a bankruptcy is called dischargeable debt. Debt that cannot be wiped out is nondischargeable debt. Most debt is dischargeable. Secured debts such as house mortgages and car loans are generally unaffected as long as a client remains current on payments.
The following types of debt are usually discharged in a Chapter 7 case:
Credit card debt
Unsecured loans
Unsecured lines of credit
Debt owed to auto financers after a vehicle has been repossessed
Debt owed on leased vehicles after they have been repossessed or turned in
Medical bills, including doctor, dentist and hospital bills
Past due utilities
NSF checks, checking account ready reserve and overdraft protection debt
Debt caused by auto accidents when a driver was uninsured
Tax debt that was filed on time and that is 3 years or older; and taxes that were filed late but have been filed for at least two years
The following types of debt are usually not dischargeable:
Income tax debt--(but can be discharged under certain circumstances as outlined above)
Student loans
Child support and spousal maintenance, certain other types of debt related to a divorce action
Debt incurred by fraud or wrongdoing
Criminal penalties
In most Chapter 13 cases a percentage of unsecured debt is paid over time--when the Chapter 13 is completed remaining balances are discharged. When nondischargeable debt is paid in a Chapter 13 it generally must be paid in full, or balances may remain after the Chapter 13 is completed.
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Call today to schedule a free initial consultation:
Phone: 651-454-0007 & 952-261-7348
Fax: 651-454-0006
Email: attorneylundquist@yahoo.com
3470 Washington Drive Suite 210
Eagan, MN 55122
Offices in:
Eagan, Woodbury, Eden Prairie, Brooklyn Center
Downtown Minneapolis, and Downtown Saint Paul
This Law Firm is a Debt Relief Agency.
We Help People File for Bankruptcy Relief Under the Bankruptcy Code.
The content of this web site is informational in nature. This information is not legal advice, and no attorney client relationship is created by the content of this web site. No one should use this information as a substitute for legal representation. If you seek legal representation or advice you should contact an attorney in your state.
minnesota, lawyer, attorney, expert, specialist, chapter 7, chapter 13, bankruptcy, fresh start, garnish, garnishment, foreclose, foreclosure, bill collector, collection, sheriff' sale, minneapolis, saint paul, dakota, ramsey, hennepin
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