What Happens After I Receive a Discharge?
The goal of federal bankruptcy law is to provide overwhelmed debtors with a fresh start. The legal discharge of your eligible debts generally means the court has ‘granted’ your bankruptcy petition, ending the case. Though your credit report will reflect the bankruptcy, your debts are cleared as if they were paid. This means creditors can no longer attempt to collect on the debts, and you’re free to rebuild with your protected ‘nest egg’ (exemptions).
Because not all debts are dischargeable in bankruptcy, it’s important to speak with a Columbia bankruptcy attorney at Reed Law Firm, P.A. about whether seeking discharge is the best option in your case. Schedule a confidential fresh start consultation with our experienced South Carolina debt relief team today by calling (803) 726-4888 or connecting with us online.
Debts Dischargeable in Bankruptcy
Whether you’re requesting liquidation (Chapter 7), a repayment plan (Chapter 13), or business reorganization (Chapter 11), the following debts are generally dischargeable in successful bankruptcy cases:
- Credit cards
- Personal loans
- Business loans
- Past due rent
- Utility arrears
- Medical bills
- Mortgage deficiency
- Vehicle deficiency
- Personal injury judgments
- Student loans (in limited hardship cases only)
In Chapter 13, the court may also discharge certain divorce settlement obligations and malicious injury judgments not otherwise dischargeable under Chapter 7. It’s essential to work with an experienced debt discharge lawyer in Columbia to review your obligations and determine the most beneficial bankruptcy options in your case.
Non-Dischargeable Debts in Columbia, S.C., Bankruptcy Proceedings
Even if the court grants your bankruptcy petition, certain debts are not dischargeable. This includes child support obligations and arrears, most tax debts and student loans, alimony and divorce settlements, government/criminal fines and restitution, DUI-related debts, attorneys’ fees, and debts arising from criminal activities. You must also continue paying your mortgage after your Chapter 13 repayment plan ends.
Importantly, the South Carolina bankruptcy court also cannot legally discharge unlisted debts. Forgetting to include a certain credit card debt on your bankruptcy petition violates the creditor’s rights, meaning you may still owe this unlisted debt after discharge. If most of your debts are non-dischargeable, then you should work with an experienced debt relief attorney to discuss bankruptcy alternatives.
Legal Effect of Bankruptcy Debt Discharge in South Carolina
‘Discharge’ is legally defined as the debtor’s release from all personal liability related to the eligible debts. Official discharge prohibits creditors from communicating with you about the forgiven debts, including via telephone calls, letters, and personal contact. Doing so after receiving notice of the discharge may result in creditor liability. Further, creditors cannot go after your legally exempt assets in Chapter 7 proceedings. The automatic bankruptcy stay, combined with the complete freedom from future legal obligations for eligible debts, gives Columbia residents the peace and freedom they need to rebuild their lives.
Columbia, S.C., Bankruptcy Discharge Attorneys
Discuss whether filing for Chapter 7 or Chapter 13 bankruptcy is the best option for your family with the experienced debt discharge lawyers at Reed Law Firm, P.A. We can help you file for bankruptcy, obtain debt relief, and enforce discharge orders in South Carolina. Call our Columbia office today at (803) 726-4888.
