Consumer Debt

The Facts of Consumer Debt

In the Bankruptcy process, not all debts are treated the same. Some debts can be discharged. Some debts cannot be discharged. Some, like taxes or student loans, you can — but only under rare circumstances.

To discuss a possible Bankruptcy and to find out what you can and cannot obtain a debt discharge for — contact the Bankruptcy Division of The Kronzek Firm.

Generally, you may be able to discharge the following types of consumer debt under Chapter 7 of the U.S. Bankruptcy Code:

Personal loans
Credit card debt
Repossession deficiencies (e.g. the difference between what a creditor sold your car for and the amount you owed on it)
Auto accident claims
Monetary judgments against you
Business debts

Generally, Chapter 7 will not allow you to discharge:

Criminal fines and debts (e.g. debts resulting from a DUI/DWI/driving while intoxicated accident)
Student loans (can be discharged under RARE circumstances)
Recent taxes (within three years)
Fraudulent debts (e.g. credit card abuse prior to Bankruptcy)
Dischargeable debt you incurred to pay off nondischargeable debt (e.g. using a credit card to pay off mortgage companies or the IRS)
Court-ordered spousal support or child support
Divorce property settlements (unless agreed to)

Generally, debts that are at least partially dischargeable under Chapter 13 include:

Recent tax penalties
Debts related to property settlements
Secured debt (car loans, mortgage debt)
Unsecured Debts such as credit card

We preface each of these lists with the word “generally” because there can be some variance. However, no matter what type of Bankruptcy you file, going forward you must be responsible and proactive with all of your debts.

Contact the dedicated Bankruptcy attorneys today, we have attorneys standing by at 1-517-886-1000, or we are reachable via e-mail!

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communcations should be taken as legal advice for any individual case or situation. The information on this website is not for intended to create, and receipt or viewing of this information does not constitute an attorney-client relationship.

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