A bankruptcy discharge is something that occurs in a Chapter 7 bankruptcy case. Generally, during a Chapter 7 proceeding, the person filing for bankruptcy will disclose all of his or her financial information. The court will then consider the person’s assets as well as their debts, and once the person’s debts are repaid through liquidation, the bankruptcy court will discharge the rest of the person’s remaining debts.
In more than 99% of all Chapter 7 bankruptcy cases, all of the person’s remaining unsecured debts are discharged. The only reason that an unsecured debt might not be discharged during a Chapter 7 proceeding is if the court finds that the debtor did not fully disclose their financial records or somehow committed perjury during the case. Typically, a discharge after bankruptcy should leave the person that filed with zero unsecured debts.
In some situations, a bankruptcy discharge only occurs after the person who filed for bankruptcy pays as much of their debt back as they can through a process known as liquidation. During liquidation, the person's assets are sold for profit which is turned over to the person's creditors to repay debts that are owed. Assets may include homes, cars, property, and jewelry, but it is important to note that not everyone has to go through the liquidation process to repay their creditors.
Working with a San Diego Chapter 7 Bankruptcy Attorney
A San Diego Chapter 7 bankruptcy attorney, such as Scott Orona, can help you navigate through the complicated legal process while protecting your assets from liquidation. A bankruptcy lawyer can also work with the bankruptcy court to try to ensure that you have enough to live on once your case is completed. Your San Diego bankruptcy lawyer can also work with you to help you understand which of your debts will be discharged and what you will have to pay to your creditors. In short, by working with a bankruptcy attorney, you can get through the Chapter 7 process as quickly and painlessly as possible.
Some Debts Are Not Dischargeable through Chapter 7
It should be noted that not all debts can be cleared by Chapter 7 bankruptcy. After discharge of your unsecured debts occurs, you might still have debts that are not dischargeable that you will be required to pay. The most common forms of non-dischargeable debts are alimony payments, child support payments, student loans, and tax obligations. If your debts are primarily non-dischargeable debts, it might make more sense to try to file for Chapter 13 bankruptcy. Under Chapter 13 the same debts cannot be discharged, but your payment of said debts might become more manageable under a structured repayment plan that a bankruptcy attorney can help you create.
Contact a California Bankruptcy Attorney Now
If you have questions about bankruptcy discharge or Chapter 7 bankruptcy in general, contact his office by calling 619-306-7627 today. Attorney Scott Orona's San Diego bankruptcy law firm can help you make sense of your financial situation while providing knowledgeable legal counsel. With a free one hour consultation to discuss your situation one-on-one with Attorney Orona, you have nothing to lose. Take control of your financial future by arranging a time to meet with Scott Orona now.