Debt discharge is one of the effects of a Chapter 7 bankruptcy filing. A person who files for this type of bankruptcy may be able to have some of their debts discharged, which means they will no longer be liable for payment. Discharges are court orders that prohibit further collection attempts by creditors, but as Bankruptcy Attorneys in Des Moines can tell you, not all debts can be discharged. The types of debt which can be eliminated with Chapter 7 include:
* Personal loans, business debts, medical and credit card bills
* Accident judgments
* Leases
* Repossession and tax debts
* Negligence and other types of judgments
* Guaranty debts
As mentioned previously, certain kinds of debt cannot be eliminated with a Chapter 7 filing. Spousal and child support, criminal restitution and fines, certain tax liabilities, DUI debts, student loans and debts incurred through intentional acts cannot be discharged. Bankruptcy Attorneys in Des Moines can tell you which debts can be eliminated with Chapter 7 filings.
Additional Effects of a Debt Discharge
The primary effect of a discharge is to absolve the debtor of any further liability, and it’s one of the biggest reasons why debtors choose Chapter 7 bankruptcy. Other effects of a debt discharge can include:
* A positive or negative effect on credit rating
* Mandatory financial management courses
* A required waiting period between Chapter 7 filings/discharges (usually eight years)
If Creditors Still Try to Collect
If one of your creditors tries to collect on a discharged debt after you have hired one of the Bankruptcy Attorneys in Des Moines, they will face significant legal consequences such as fines. Discharge orders are final, and work in much the same way as an injunction in that they bar additional collection attempts. In fact, these discharges are so strict that creditors are forbidden from further communications about the debt.
I Need Help with a Chapter 7 Discharge. Do I Need to Hire an Attorney?
A Chapter 7 debt discharge can have significant and long lasting effects. If you need help or legal advice on a debt discharge, you should call a local bankruptcy attorney. Bankruptcy Attorneys in Des Moines can help you fill out and submit paperwork correctly and on time, and he or she can offer legal representation in the courtroom setting.
