Skip to Content
Top
Types of Dischargeable Debt

Types of Dischargeable Debt

Orange County Bankruptcy Attorney

In order to understand dischargeable debt in a bankruptcy, it will first be necessary to learn what the function and purpose of a bankruptcy discharge is. A bankruptcy discharge releases the debtor from all personal liability for certain types of debts, also known as dischargeable debts.

Once a debt has been discharged, the debtor is no longer legally required to pay anymore of that debt. A bankruptcy discharge is a permanent order prohibiting the creditors from taking any sort of collection action on the discharged debts, including legal action or any communications with the debtor, such as telephone calls or letters through the mail.

While the debtor is not liable for any of the discharged debts included in the bankruptcy, the debtor will still be responsible for a valid lien (a charge on specific property to secure payment on a debt) that was not avoided through bankruptcy. This means that a secured creditor may still enforce a lien to recover the secured property.


It is important to remember that not all debts can be discharged through bankruptcy and the dischargeable debts vary under each chapter of the Bankruptcy Code. Contact 1st California Law Inc. for a free consultation to help answer your questions about bankruptcy and debt.


The most common types of non-dischargeable debts include:

  • Income taxes less than three years old
  • Trust fund taxes
  • Debts for spousal support
  • Child support debts
  • Debts for willful and malicious injuries to persons or property
  • Government fines and penalties
  • Government-funded educational loans
  • Debts for personal injury caused by drunk driving
  • Debts for certain condominium or cooperative housing fees

In general, credit card debt, medical bills, personal loans, and past-due utility bills can all be discharged in a bankruptcy. The Chapter 13 is commonly known as the "wage-earner plan," whereas the Chapter 7 is reserved for those who have minimal or sporadic income and who really need it. In order to determine which bankruptcy is right for you, we will need to assess your specific financial, living and employment situation.

Chapter 7 allows the debtor to erase or wipe out certain unsecured debts, whereas a Chapter 13 allows the debtor with a decent and regular income to pay off all or merely a portion of their debts through a repayment plan. Perhaps the most significant advantage of Chapter 13 over a Chapter 7 is that it offers debtors the opportunity to save their homes from foreclosure. By filing under this Chapter, debtors can stop foreclosure proceedings and cure delinquent mortgage payments over time.


Are you interested in learning more about what types of debts can be discharged through a Chapter 7 or Chapter 13 bankruptcy? If yes, don't hesitate to contact 1st California Law, Inc. to speak with our Orange County bankruptcy attorney.


Read Real Reviews

LET 1ST CALIFORNIA LAW INC GET YOU DEBT FREE
    "Amazing law firm to work with, very knowledgeable, & very kind!"
    Amazing law firm to work with, very knowledgeable, & very kind. They made filing for bankruptcy easy. Kevin is a amazing lawyer, would definitely recommend to friends and family.
    - Evelyn V.
    "Kevin made us feel at ease during a very stressful time in our lives."
    Kevin is the best! He made us feel at ease during a very stressful time in our lives. His upbeat personality and thorough explanations made this whole process effortless. His communication was on point and the cost for his services was absolutely reasonable. If I ever need legal service again in the future, he is my go to guy. Love him!
    - Elizabeth C.
    "Being the light at the end of this scary tunnel!"
    Nobody ever hope to find themselves filing for bankruptcy but when I did, my first call with Kevin put me in such ease that I knew I found the right person to help me.
    - Leslie I.
    "Made the entire process of filing my case approachable & much less stressful than anticipated!"
    Kevin was absolutely fantastic to work with. He made the entire process of filing my case approachable and much less stressful than I anticipated. He was responsive, professional, and direct throughout the entire process, and personally accompanied me at my hearing. I would highly recommend his services.
    - Ashley T.
    "One of the best bankruptcy attorneys to work with!"
    Kevin Kunde was one of the best bankruptcy attorneys to work with. He was kind, informative, courteous and very knowledgeable. I would recommend 1st California Law and Kevin Kunde services to anyone seeking debt relief assistance. Bankruptcy can be a very scary situation and I through out the entire process I felt well guided and taken care of by 1st California Law. Thank you for everything.
    - Melissa L.
    "Awesome attorney"
    I recently filed for my Chapter 7 through Mr. Kevin’s law firm and I could not be happier with his services. All of my concerns and worries were eliminated when Mr. Kevin thoroughly explains the process of bankruptcy filing and court hearing. The actual court hearing is very simple and to the point, just as Mr.Kevin said. In all, i highly recommend Mr.Kevin as an attorney for anyone who is in need of financial debt relief. He is kind, transparent, and dedicated to his profession. I'm glad i have had a chance to work with Kevin.
    - Bruce
    "Great Service"
    It was the best experience ever with Kevin, I consulted several attorneys regarding my bankruptcy before I went to Kevin, and Kevin was very helpful and also the fees is very good. It was so easy to prepare my filling with him and he kept me updated with everything and tell me everything I need to know even if I didn't ask for it. Kevin show up with me in court and he was very helpful in getting over this stressful situation easily and smoothly, highly recommended him and his office if you look for any financial relief advice or help. Thanks Kevin.
    - AA
    "Best lawyer"
    I'm 100% satisfied with his service I highly recommend to anyone!
    - Vivian

Marks Of Recognition

Why Choose 1st California Law Inc?

  • Thorough Communication with Our Clients
  • Passionate Service, Personal Help, Practical Solutions
  • Available 24 Hours a Day, 7 Days a Week
  • Free Initial Consultations
Get a Free Consultation Today Contact Our Offices

A member of our team will be in touch shortly to confirm your contact details or address questions you may have.