What types of debts cannot be discharged when filing for bankruptcy in Alabama?
When an individual or business files for bankruptcy, it’s generally because they are looking to get a handle on their debt and/or are looking to get some or all of their debt “erased” so they can start with a clean slate. One way this is accomplished is by getting certain debts discharged.
When a debt is discharged during the bankruptcy proceedings, it “releases the debtor from personal liability for certain specified types of debt,” according to the United States Bankruptcy Court Southern District of Alabama. Essentially, what this means is that the debtor is no longer obligated to pay back what they owe.
While there are many types of debts that can be discharged such as credit card debt, certain types of loans, etc., there are also debts that generally cannot be discharged during the bankruptcy proceedings. According to the United States Bankruptcy Court Southern District of Alabama, the following types of debts usually cannot be eliminated when a person files for bankruptcy:
- Student loans
- Child support
If an individual or business files for bankruptcy and is carrying any of the following debts, it is unlikely that the court will allow these to be discharged.
An Alabama Bankruptcy Lawyer Can Determine What Types of Debts an Individual Has That Can Be Discharged
If an individual or business is considering filing for bankruptcy and wants to know which of their debts qualify for discharge, they can schedule an initial consultation with an Alabama bankruptcy attorney. The fact is, the type of bankruptcy filing an individual uses will play a large role in what happens to their debt. While there are some types of bankruptcy that allow an individual to get their debts discharged, excluding the types listed above, other types help them arrange a repayment plan with their creditors so that some or all of their debt is paid.
Business owners and individuals who need more information on filing for bankruptcy or have specific questions they’d like answered by a legal expert can contact Hill, Gossett, Kemp & Hufford, P.C. for legal help. The Alabama bankruptcy lawyers at Hill, Gossett, Kemp & Hufford, P.C. are available to help individuals understand the different ways they can file for bankruptcy and determine if they qualify to file.
Disclaimer: No representation is made that quality of legal services provided is greater than the quality of legal services provided by other attorneys.
Hill, Gossett, Kemp & Hufford, P.C. can be reached at:
2603 Moody Parkway, Suite 200
Moody, Alabama 35004
Phone: (205) 640-2000
7900 Parkway Drive
Leeds, AL 35094
Phone: (205) 699-5500
6441 U.S. Highway 11
Springville, Alabama 35146
Phone: (205) 467-2225