How Does Bankruptcy Discharge Work?

Being weighed down under a significant amount of debt can leave a person feeling stressed out, unsure of his or her rights and wondering whether there are any legal options that can be pursued. Filing for bankruptcy is an extremely effective way for an individual to eliminate his or her outstanding debt so as to be given a fresh financial start. Once an individual has gone through the bankruptcy process, he or she will be given a discharge order from the court which relieves that individual of having to pay any of the debt covered by the discharge.

Not all debt is eligible for discharge through bankruptcy. Child support payments, alimony, student loans, the majority of taxes, court fines, restitution order in a criminal case and judgments resulting from a personal injury lawsuit or claim are some examples of types of debt that a bankruptcy discharge will not cover. The same holds true for debt incurred by fraudulent means. Debt incurred after the date of filing cannot be added to a bankruptcy petition and thus is ineligible for discharge.

Creditors and debt collectors will not be able to harass you or take legal actions against you on a debt that has been discharged. Once a debt is discharged, your slate has been wiped clean and you no longer owe the debt in question. If you have a mortgage on your house, a lease on your vehicle or you are making payments on another item of value that you do not outright own, you will need to continue making payments to those creditors if you intend on retaining possession of the property.

Hiring an experienced bankruptcy attorney from our Detroit law firm to represent your case and help you prepare the documentation necessary to file, will give you a much greater chance of getting the majority of your debt discharged. At Marshall D. Schultz, we do not judge our clients or try to make them feel ashamed for seeking bankruptcy protection. When you come to us, we will be compassionate to your situation and do everything we can to help you achieve the outcome you seek. Having filed more than 10,000 bankruptcy cases over the years, we are more than equipped to handle your case and assist you in getting your debt discharged. Call a Detroit bankruptcy attorney at our law offices now to find out which of your debts may be eligible for discharge through bankruptcy.

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