Dischargeable And Nondischargeable Debts

When considering bankruptcy as an option, a consumer should determine whether the debts can be discharged through bankruptcy. While some debts are completely dischargeable, others are nondischargeable. Both types of debt should be considered when deciding to file bankruptcy.

At the Law Office of Ronald V. De Caprio, we provide experienced and sound counsel focused on helping our clients achieve debt relief through bankruptcy. When a client comes to our Hudson Valley law firm to discuss bankruptcy, our attorneys will review his or her income, assets and debts to determine if bankruptcy is the correct option.

Dischargeable Debts Under Chapter 7 Bankruptcy

Chapter 7 is also known as “liquidation bankruptcy” because it allows for the swift removal of all unsecured outstanding debts. This means that these obligations do not have to be repaid by the debtor. Even when a consumer has some debts that are nondischargeable, the removal of other debts will make it easier to repay those that remain. Dischargeable debts include:

  • Medical expenses
  • Credit card bills
  • Other non-secured debts

A Chapter 13 bankruptcy also allows for partial discharge of secured debts such as car payments or home mortgages if a debtor made all payments on time during the bankruptcy. Debtors should acquire a full understanding of the risks of this strategy from an experienced bankruptcy lawyer. Our law firm can help.

Non-Dischargeable Debts

When considering bankruptcy, there may be a number of debts that are considered nondischargeable. While these debts cannot be discharged under Chapter 7 bankruptcy, it may be possible to reorganize, restructure or reduce these debts through Chapter 13 bankruptcy. Non-dischargeable debts include:

  • Taxes
  • Fines
  • Punitive damages
  • Student loans
  • Child support
  • Alimony

For more information about an individual’s constitutional right to file bankruptcy and to discuss a specific financial situation with an experienced attorney, contact our New York firm for a comprehensive review to determine if bankruptcy is the right option.

Contact Us

Please feel free to call (845) 406-4201 or contact us online to schedule an appointment to discuss the situation with an experienced Rockland County attorney.