The mortgage crisis, the economic downturn, low housing prices, high unemployment rates, and high medical expenses – any one of these factors may have wreaked havoc on your financial situation. If you are drowning in personal debt, you may need a solution to your problems.
Many debtors have tried debt consolidation or they have withdrawn equity from their home to pay-off high interest loans, but it has not been enough to help them pay their weekly expenses and bills.
Bankruptcy may be an option for some debtors, but before filing for either Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, you should consider whether or not your debts can be legally discharged through bankruptcy.
Before filing bankruptcy in Texas, contact a bankruptcy lawyer who understands your Texas bankruptcy laws and can review all of your debts to make sure bankruptcy is right for you.
What debts are not discharged by filing bankruptcy?
Prior to filing for bankruptcy, you must determine your debt obligations and whether or not your debt can be discharged by filing in either Chapter 7 or Chapter 13 Bankruptcy in Texas. Below is a list of all debts that will not be discharged. If you file for Chapter 7 Bankruptcy in Texas, these debts will remain after the Texas bankruptcy court has discharged all of your qualifying debts. If you file for Chapter 13 Bankruptcy, these debts will be considered part of your Chapter 13 debt repayment plan and must be paid in full. Non-dischargeable debts include:
- Student loans which must be repaid unless the bankruptcy court determines that repayment will cause you “undue hardship”.
- Back child support payments must be paid.
- All penalties for personal injury or wrongful death claims must be paid if they stem from a DUI conviction.
- All fines for violating state or federal laws or penalties assessed for criminal restitution for a crime must be paid.
- All income tax debts from the last 3 years must be paid.
- All debts that were not listed on the bankruptcy schedules must be paid.
Debts for secured property that you wish to keep will also not be discharged by filing for bankruptcy. Under certain conditions, the secured property may be given to the trustee for them to liquidate and to use the proceeds from the sale to repay creditors.
If you qualify to file Chapter 7 Bankruptcy in Texas there are additional debts that may be determined non-dischargeable by the bankruptcy court if the creditor makes a challenge against the discharge:
- Debts you incurred on the basis of fraud.
- Cash advances or loans that were given within the last 60 days of filing for Chapter 7 Bankruptcy protection and are in excess of $1,150.
- Debts which are incurred from the malicious injury or willful injury to another person or property.
- Credit purchases of $1,150 or more for luxury goods or services made within 60 days of filing for Chapter 7 Bankrupty.
- Debts from embezzlement, larceny or breach of trust.
- Divorce decree debt or settlement amounts. The court may make an exception if they determine that you will not be able to pay them and the benefit you will receive is substantially higher then the harm to your ex-spouse.
Hiring a Bankruptcy Lawyer
Bankruptcy lawyers understand bankruptcy laws in Texas and can make sure you include all of the necessary information on your bankruptcy forms, you understand bankruptcy laws and you get the information you need to file the right bankruptcy.
Latest posts by Beth (see all)
- Chapter 7 bankruptcy how to avoid filing a second time? - April 24, 2017
- Chapter 7 bankruptcy how do they determine if I can file? - April 19, 2017
- Receiving Supplemental Security Income can I file for bankruptcy? - April 12, 2017