Filing for bankruptcy protection is a very serious legal step that should never be considered lightly. Issues such as credit ratings and a debt repayment schedule could last for several years following the fact. But, a successful bankruptcy petition could also result in a considerable amount of outstanding debt being discharged after all is said and done, as a bankruptcy discharge is the order issued following the final hearing that will include all debts that were not repayable. This can be a complicated legal task in many instances, and it always takes representation from an experienced Brooklyn bankruptcy attorney like the professionals at Ursulova Law Office.
What Can Be Discharged
In both a Chapter 7 and a Chapter 13 bankruptcy petition, the assets of the filing party will be evaluated for potential sale and a list of exempted items will be identified. Those filing must qualify for a petition by means testing, with those not qualifying for Chapter 13 being assessed for a Chapter 7 case. All clear title property is typically sold and used to repay creditors with the remaining debts being discharged as not being further collectable. In a Chapter 13, the same process is applied except that the filing party will submit a repayment schedule for a typical five-year period that will result in some debts being repaid in full with a potential for some unsecured debt being discharged just as in a Chapter 7.
Exempt Debts
It is important to understand that all personal debts are not subject to a bankruptcy protection petition discharge. Those items include but are not limited to:
- Student loan debt
- Court ordered fines and restitution
- Child support and alimony
- Personal injury debts
- Debts not included in the petition
Contact a Brighton Beach Bankruptcy Lawyer
Although it is not necessary to retain an attorney for a bankruptcy proceeding, laws are complicated and it is always best to retain a professional like the legal representatives at Ursulova Law Office bankruptcy lawyer in Brighton Beach for optimum discharge results.
