Legal terms and lingo you don’t understand can be very frustrating if you are struggling financially. Filing for bankruptcy in Littleton, Centennial and Aurora can be a stressful process, but it doesn’t have to be. Be sure to work with an experienced bankruptcy lawyer like Barry Arrington who will explain every step of the process. In the first part of this series – Part One: Common Bankruptcy Terms, we discussed liens, secured debt, unsecured debt and liquidation. In part two, we’ll tackle dischargeable debt and non-dischargeable debt.
1. What is Dischargeable Debt?
Dischargeable debt is debt which can be cleared by filing for bankruptcy. Most debts can be discharged by bankruptcy, and can include (but aren’t limited to):
- Credit card debt (this includes late fees)
- Medical bills
- Business debts
- Tax penalties
- Utility bills
- Collection agency accounts
- Money owed under lease agreements (past due rent)
- Attorney fees (does not include child support or alimony awards)
Speak with bankruptcy attorney Barry Arrington to determine how much of your debt is dischargeable. Chapter 7 bankruptcy and Chapter 13 bankruptcy can give you a fresh financial start.
2. What is Non-Dischargeable Debt?
Non-dischargeable debt is debt which cannot be cleared by filing for bankruptcy. Because the purpose of bankruptcy is to clear debt and give people a clean financial slate, the list of non-dischargeable debts is much smaller. These include (but aren’t limited to):
- Student loans (in rare cases, student loans can actually be dischargeable. Speak with an attorney regarding your specific case, and read this blog post about the subject).
- Taxes (Municipal, State and Federal).
- Criminal fines such as traffic tickets.
- Child support and alimony.
- Personal injury debts if they were caused by driving while under the influence of alcohol.
- Creditors can ask the court to declare certain debts non-dischargeable if they were incurred because of fraud, willful injury to another person or property, divorce, or embezzlement.
Contact an experienced bankruptcy lawyer in Aurora, Centennial or Littleton if you are concerned that some of your debts aren’t dischargeable. Barry Arrington has many years of experience and a thorough understanding of Colorado bankruptcy law.
We hope this list of common bankruptcy terms has helped you. If you are considering filing for Chapter 7 or Chapter 13 bankruptcy in Littleton, Centennial or Aurora, and are confused by the process, contact experienced bankruptcy attorney Barry Arrington for a free consultation at 303-205-7870 or submit the “Get Help Now” form to begin your journey towards financial freedom.