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Chapter 7
Chapter 7Discharge
An individual Chapter 7 debtor must be granted a bankruptcy discharge, unless one of the ten independent statutory grounds for denial of a Chapter 7 discharge applies: Bankruptcy code §727(a). The effect of the discharge is to discharge the bankruptcy debtor from all debts that arose prior to the order for relief under Chapter 7, as well as from all debts that, under Bankruptcy Code section 502, are treated as pre-petition debts.Exception: Non Dischargeable debts
The bankruptcy discharge does not include particular debts that the court has determined to be non-dischargeable under section 523. It is important to distinguish between a denial of the entire bankruptcy discharge under section 727, and a determination under section 523 that a specific debt is non-dischargeable. A denial of the entire bankruptcy discharge allows all creditors to pursue their claims post-bankruptcy; whereas if a discharge is granted, only those creditors who are owed debts found to be non-dischargeable in bankruptcy under section 523 will be free to collect their claims post-bankruptcy.Creditor adversary proceedings against Chapter 7 debtor for fraud or misrepresentation
Creditors lawyers will occasionally sue a bankruptcy debtor within the bankruptcy proceeding itself seeking to have their debt declared non-dischargeable due to fraudulent borrowing by the debtor. Bankruptcy courts generally consider that borrowing on credit at a time when the debtor is insolvent or over extended on credit to make out a case for fraud.Be
careful about "loading up" your credit cards within a plan to file
bankruptcy. You could get caught and be sued be the creditor in the
bankruptcy case itself with the debt to the creditor becoming
non-dischargeable and with court costs and fees to the creditors
attorney and your own lawyer.
Income Tax Debts
Income tax debt is non-dischargeable in bankruptcy, if incurred for a taxable year for which a tax return was due less than three years previous to the bankruptcy filing. Tax debt older than this however is considered "stale" and is treated as a non-priority unsecured debt which may be discharged.Student Loans
Student loans are non-dischargeable in bankruptcy. The 2005
bankruptcy reform act paints student loans with a broad brush such that
most types of loans for any educational purpose is considered to be
non-dischargeable. There still exists a hardship discharge however for
people whose situation is unlikely to ever improve to the point where
they would be able to repay their student loans. Alimony maintenance and
child support are also non-dischargeable
California Bankruptcy Lawyer in San Diego
If you are facing foreclosures, repossessions, wage garnishments, liens, and constant calls and letters from creditors and collection agencies, we are ready to assist you. The Pacific Bankruptcy Center is a debt relief agency, aiding clients in filing for bankruptcy relief under the Bankruptcy Code. Contact a bankruptcy lawyer at our firm today to learn more through an honest assessment of your situation.
With over fifteen years of experience we have recovered cars and trucks from public sale auctions and had them returned to our clients.
Stopped foreclosure and returned the possession of real property to our clients.
Lifted restraining orders on frozen bank accounts.
Reduced or wiped out unsecured credit card and medical debt.
Stopped landlord evictions in San Diego and San Diego county.
Negotiated with creditors lawyers over valuation of property.
Filed valuation motions.
Filed motions to avoid liens on real and personal property.
Forced the San Diego County Sheriff to return vehicles out of levy and impound.
Recovered money damages for clients against creditors who violate the automatic stay.
Filed motions to reinstate a previously lifted stay.
Filed motions to redeem personal property.
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