What is Debt Discharged?

Dischargeable debt in Chapter 7 and Chapter 13 bankruptcy

What debt is discharged in a bankruptcy? When discharging debts by filing bankruptcy, our Arizona bankruptcy attorneys are usually referring to a Chapter 7 bankruptcy. Typically, an Arizona Chapter 13 bankruptcy involves a restructuring of debt rather than a discharge of the debt.

An Arizona chapter 7 bankruptcy wipes away most debts completely. For that reason, most people in Tempe and Phoenix hope to file chapter 7 bankruptcy and get rid of their debts completely. A chapter 7 bankruptcy example, credit card debt; is one of the most commonly discharged debts in an Arizona chapter 7 bankruptcy.

Commonly Discharged Debts in a Bankruptcy:

Dischargeable debt in an Arizona bankruptcy 1. Credit card debt and charges (including overdue penalties and late fees)

2. Collection agency accounts and bills that have been turned over to collections.

3. Medical bills and past due Dr. bills.

4. Personal loans (from friends, family, and employers).

5. Cable and Utility bills (past due amounts only, not future bills)

6. NSF Checks and Dishonored checks (unless based on fraud. Beware, there may be criminal penalties for bad checks)

7. Past Due Rent and Money owed under lease agreements. Note, this may not prevent you from being evicted. Check with your attorney.

8. Civil court judgments (unless based on fraud)

9. Unpaid Taxes: This pertains to only Certain tax penalties and unpaid taxes past a determined number of years

10. Attorney fees (except child support and alimony awards)

11. Revolving charge accounts and Extended Credit (except extended payment charges)

12. Social security over-payments (again, be aware that if fraud is involved, you will probably not be able to discharge this obligation), and

13. Veterans assistance loans and over-payments (as long as there is no fraud).

14. Some student loans (only in a few rare circumstances)

15. Repossession Fees: Deficiency balances on vehicles after repossession

16. Auto accident claims (except those involving drunk driving)

17. Personally Guarantees: guaranteed business debts and promissory notes

We are a debt relief agency. We also help people in Arizona file for bankruptcy relief under the Bankruptcy Code.

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After evaluating your debt, our attorney will recommend the best means by which to wipe out your debt. Next, upon qualifying for our program, you pay $0 down for legal fees. A payment arrangement is agreed upon in order to make low monthly payments for post-filing costs.