Oklahoma City Lawyer Working Tirelessly to Discharge Your Debts
Living in debt is not easy. Falling behind on payments, receiving countless calls from debt collectors, and struggling to make ends meet can take a toll on your mental and physical health. Fortunately, there are ways to discharge your debts so you can wipe your financial slate clean.
Don’t let debt destroy your life—seek financial relief with the help of the attorneys at Mitchell & Hammond. We will guide you through the process of discharging your debts to protect your financial future.
What Does Debt Discharge Mean?
The term “debt discharge” refers to the elimination of debt. If a debt is discharged, you are no longer required to pay it, and the creditor is no longer allowed to contact you or take legal action against you to collect it.
How to Discharge Your Debts By Filing For Bankruptcy in Oklahoma City
Discharging your debts is one of the main benefits of filing for bankruptcy. The rules regarding debt discharge vary depending on the type of bankruptcy.
If you file for Chapter 7 bankruptcy, many of your assets are sold and the proceeds are given to your creditors to repay your debts. But, the vast majority of debtors will not have assets that are valuable enough to cover their debts. This won’t matter. Most of your debts are discharged at the end of your Chapter 7 bankruptcy case regardless of whether or not you were able to pay the creditors by selling your assets.
Chapter 13 bankruptcy is known as the repayment plan bankruptcy. If you file for Chapter 13 bankruptcy, you are required to create and comply with the terms of a repayment plan. This means you will need to make payments to your creditors over the course of three to five years. Once the plan is complete, the remaining balances on most of your debts will be discharged.
What Are Dischargeable vs. Non-Dischargeable Debts?
Debts are classified as either dischargeable or non-dischargeable. Dischargeable debts are those that can be eliminated by filing for bankruptcy, whereas non-dischargeable debts cannot be eliminated by filing for bankruptcy.
Some examples of dischargeable debts include:
- Credit card debts
- Medical bills
- Personal loans
- Utility bills
Your creditors will have an opportunity to challenge these discharges, but in most cases, the debts will be discharged at the end of your bankruptcy case.
Some examples of non-dischargeable debts include:
- Child support
- Unpaid taxes
- Student loans
These debts are not discharged in bankruptcy. However, it is possible to discharge student loan debt in some bankruptcy cases. To discharge this debt, the debtor must prove that repaying these loans would impose an undue hardship on them. Ultimately, the court has the final say as to whether or not student loans are discharged.
Timing is important when it comes to classifying debts as dischargeable or non-dischargeable. The only debts that are included in your case are those that were incurred prior to filing for bankruptcy. This means that debts that were incurred after you filed for bankruptcy will not be discharged. If you want to include a debt that was incurred after filing, you must take special action to ask for the court’s approval.
Discharging Your Debt: Chapter 7 vs. Chapter 13 Bankruptcy
Each case is unique, but in general, you will be able to discharge more debts by filing Chapter 13 bankruptcy. Some of the debts that are dischargeable in Chapter 13 bankruptcy proceedings but not in Chapter 7 bankruptcy proceedings include:
- Debts that you incurred in order to pay non-dischargeable debts (for example, if you paid child support with a credit card, the credit card debt incurred to make this payment could be discharged)
- Debts assigned to you during the division of property in divorce proceedings
- Certain court fees
- Debts that were not discharged in a prior bankruptcy case
- Certain homeowners’ association fees
These debts are not dischargeable in Chapter 7 bankruptcy, but they will be discharged in Chapter 13 bankruptcy. This is one of the many benefits of filing for Chapter 13 rather than Chapter 7.
Call Our Debt Discharge Attorneys In Oklahoma Today to Schedule A Free Consultation
If you are interested in discharging your debts, contact the skilled attorneys at Mitchell & Hammond as soon as possible. Tell us more about your finances so we can determine the most effective way to discharge your debts. With our help, you can retake control of your finances and obtain the fresh financial start you need. To schedule a free consultation, call 405-216-0007 or submit your information via the form on this website.