Discharge Explained

After bankruptcy, as long as a person’s heart still beats, s/he can start over. Letting go of belongings may never be easy, but everyone lives with the consequences of their options and residues of their actions. Bankruptcy is not a tragedy. What is a tragedy would be to lie awake at night and wondering “what if”, rather than be the tragic hero who keeps going.

In bankruptcy, after a formal discharge, s/he no longer owes anything on all debts discharged, but some debts do not get discharged.

Co-signed debt will be discharged for the person filing bankruptcy, but the non-filing person will still be liable for the debt, unless the co-debtor filing bankruptcy protects the non-filing person in a Chapter 13.

Debts that are never dischargeable in bankruptcy include:

• Criminal Fines, Restitution and Penalties
• Domestic Support Obligations
• Some Tax Debt
• DUI Debt
• 401(k) Loan Debt
• Homeowner Association dues from after the filing

Debts that are dischargeable include

• Medical Bills
• Credit Card Debt
• Judgment Debt
• Contract Debt
• Loan Debt

Debts that are dischargeable unless a creditor objects include:

• Debts for Willful and Malicious Conduct
• Breach of Fiduciary Duty
• Creditors Not Listed in the Bankruptcy Petition
• Fraud

When facing bankruptcy, engage an experienced New York bankruptcy attorney to learn which debts can get discharged.