One of the primary appeals of bankruptcy is that it can help wipe out debt, allowing the filer the ability to receive a financial fresh start. However, there is a misconception that all debts will be erased during bankruptcy, which is not the truth. In reality, only certain debts are eligible for a discharge. If you are considering bankruptcy in Ohio, it’s important to understand the different facets of this process. As such, it’s in your best interest to keep reading to learn more about what a discharge is, when it occurs during the process, and which debts are eligible. In addition, you’ll discover the importance of working with Franklin County bankruptcy lawyers to help guide you through this process.
What Is a Discharge and When Does It Happen?
One of the main goals of bankruptcy for many is to obtain a debt discharge. Essentially, this is a court order that releases you from your obligations. This means you are no longer legally responsible for repaying a debt, as you cannot be held legally responsible for these debts. It’s also important to understand that once a debt is discharged, a creditor can no longer contact you in an attempt to collect a debt, as you are no longer legally obligated to repay the debt.
It’s imperative to understand that your debt discharge will occur at the end of your bankruptcy case. However, you should note that you must complete the mandatory debtor education course before your eligible debts will be discharged. This class, like the pre-filing credit counseling course, must be completed to reap the full benefits of the bankruptcy process in Ohio.
What Debts Are Dischargeable?
As mentioned, it’s critical to understand that only certain debts are eligible for a discharge during bankruptcy. Typically, these include the following:
- Credit card debts
- Medical bills
- Unpaid rent
- Outstanding utility bills
- Breach of contracts
- Judgements for unpaid debts
- Personal loans
However, you should note that there are certain debts that cannot be discharged. These include family law obligations like alimony or child support, victim restitution for criminal acts, secured debts, debts gained during bankruptcy, and any debts you’ve failed to include on your bankruptcy petition.
As you can see, bankruptcy is an incredibly difficult process, complete with many important and difficult decisions you must make. Unfortunately, this process can be challenging to navigate, which is why it’s critical to work with an experienced attorney during these difficult matters. At Cousino & Weinzimmer LLC, we understand how difficult these matters can be. Our team will do everything possible to assist you during these times to guide you through this process. If you are ready to embark on this journey, our firm is ready to fight for you. Connect with us today to learn more.
