South Texas Bankruptcy Attorney
Discharging Debt in McAllen, Corpus Christi, Harlingen, and Brownsville
When your debts have been discharged, you are free to begin living your life free of the stress and burden of unpaid debts. Once they have been legally discharged, you have no obligation to your past creditors and you can begin the process of rebuilding your credit. At Malaise Law, we know how taxing the bankruptcy process is on our clients, which is why we work assiduously to ensure that we make this process as painless as possible. If you have any questions about discharging your debt or bankruptcy, do not hesitate to schedule a free consultation with a South Texas bankruptcy lawyer at our firm.
Non-Dischargeable Debts
Bankruptcy is not a debt panacea. Even Chapter 7, which requires no repayment plan, does not discharge all debts. It is important that you have a bankruptcy attorney review your finances and determine which debts are able to be discharged. For Chapter 7 and Chapter 13 filings, some of the most common non-dischargeable debts are:
- Mortgages
- Taxes
- Federal Education Loans
- Child Support
- Alimony
- Unlisted Debts
- Debts Associated with DUI Accident Injuries or Wrongful Death Restitution
- Debts Associated with Criminal Proceedings and Criminal Fines
- Debts Associated with Willful or Malicious Injury Restitution
- Fraudulent Debt, Including Dischargeable Debts from Paying Non-Dischargeable Debts
If the debt is dischargeable but secured, the creditor can and will likely choose to seize the lien as payment. It is completely legal to voluntarily pay any discharged debts, and if there are any dischargeable debts, usually secured debts that you wish to keep making payments on, you can petition to have the debt reaffirmed.
There is also a special provision for people who file for Chapter 13 bankruptcy but at some point during the repayment period find that they are unable to complete the plan. This is called a hardship discharge, and is granted to people who
Are facing economic circumstances that make it impossible to pay the debts, but the circumstances are not in their control and are not their fault,
Have paid their creditors a minimum amount, equal to that which the creditors would have received if they had filed for Chapter 7, and
Are unable to modify the repayment plan.
If, however, the debts which they are unable to pay are non-dischargeable by Chapter 7 standards, then they will not qualify for a hardship discharge.
If you are facing bankruptcy in Brownsville, McAllen, Harlingen, or Corpus Christi, contact a South Texas Bankruptcy Attorney at our firm who can review your case.