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Claim For Bankruptcy And Community Debts

Claim For Bankruptcy And Community Debts
"""If you are divorced and filing for bankruptcy, you may be wondering if you will be able to discharge your obligation to pay community debts. In normal circumstances, it is highly probable that filing the court petition regarding the same will release you from all dischargeable community debts. In certain instances, however, you may be obligated to pay the same amount even after filing for chapter 7 bankruptcy. Consequently, you must be aware of the types of debts that may or may not be dischargeable. Always keep in mind that, if granted, bankruptcy will remain on your credit report for at least ten years. Therefore, if you plan everything in advance, things will be significantly simpler for you.

Petition Filing When A Dissolution Action Is In Progress

However, in such circumstances it is recommended that you consult with your family law attorney. The attorney is an expert who understands the complexities of the laws associated with a bankruptcy claim. They will provide you with an accurate depiction of the situation based on your unique circumstances and numerous other factors associated with the same. Filing for bankruptcy during the pendency of a dissolution action, such as a divorce proceeding, can have numerous consequences. Your family law attorney will assist you in comprehending these ramifications and taking the appropriate action. In addition, you should be aware that if the court releases you from community debts, your spouse will be responsible for paying off the entire balance of those debts. In other words, if you file your petition while a dissolution action is pending and the community debts are considered dischargeable, the liability will be transferred to your spouse.

Debts that cannot be released under any circumstances

Generally, bankruptcy under this chapter is viewed as a discharge of all debts. However, there are certain types that cannot be discharged in any circumstance, even if you win your Chapter 7 bankruptcy case. Regarding which debts are dischargeable and which are not, the court's decision and your particular circumstances will determine which debts are dischargeable and which are not. In normal circumstances, the bankruptcy court does not discharge the following debts.

Sanctions and confiscations,

Criminal penalties,

Student loans,

Prior bankruptcy-related nondischargeable debts,

Liability for injury or fatality caused by intoxicated driving,

Debts caused by the debtor's malicious or intentional malfeasance,

Responsibility for alimony and child support, and

Taxes (except in specific instances).

However, sometimes the debtors are unable to have even dischargeable debts eliminated because the creditors have filed an appeal. However, once the debtors win their bankruptcy claim and the equity interest in the property is exempt, they can typically retain the property through redemption or reaffirmation.

" - https://www.affordablecebu.com/

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"Claim For Bankruptcy And Community Debts" was written by Mary under the Finance / Wealth category. It has been read 71 times and generated 0 comments. The article was created on and updated on 02 June 2023.
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