Texas Bankruptcy Lawyers - "Are all debts discharged in bankruptcy?"

The code provides that many specifically designated debts are not dischargeable. In general, nondischargeable debts relate to taxes owed to governmental units, amounts owed for alimony and child support, and debts owed to others related to commission of a crime. Other debts are included as well, and the common thread connecting many nondischargeable debts is the obligation was incurred without approval from the creditor. Also, student loans and a few other debts are not dischargeable based upon public policy. 11 U.S.C. 523.

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Nondischargeable debts must be repaid. There are 18 categories of debt excepted from court discharge granted in chapters 7, 11, and 12. Creditors and their lawyers may file an objection at any time claiming one of these exceptions. A more limited list of exceptions applies to cases under Chapter 13, allowing for more generous discharge potential for debtors. Discharge disputes among lawyers are resolved by the court. Frequently, obligations created by consensual divorce settlements are disputed. The nature of the obligation, settlement terms and state law all impact dischargeability.

All debtors and their attorneys have questions about current laws. Board certified consumer bankruptcy specialists in Texas refer to the Code regularly, as well as review slip opinions of new case decisions as they become available. The process is organic, in that the law, benefits, rights and duties of debtors changes in response to the current political environment, and in turn, require a constantly changing approach in court to gain favor. Also be aware, each debtor and their attorney are responsible for legal compliance with all Texas bankruptcy laws regardless of actual knowledge of recent changes. For this reason, debtors filing pro se seldom achieve the results as favorable as debtors who are represented by a qualified consumer specialists who is familiar with current changes and requirements.

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