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Types of Dischargeable Debt in Michigan

What does it mean to have one's debt discharged?

When an individual is unable to repay their debt over a manageable period of time, it may be time for them to explore their financial options. One of the most practical solutions would be to file for bankruptcy, as this would effectively allow them to discharge most, if not all, of their debt. But what exactly does it mean to "discharge" debt through bankruptcy? Well, this essentially means that the court would have the power to rid you of all applicable debts—including credit card debt, past-due rent and medical bills—and subsequently relinquish you of the legal responsibility to repay your creditors. It is important to understand that not all debts are dischargeable, however, as you may still need to repay certain debts after the bankruptcy process has been concluded. For this reason, we encourage you to learn more about the difference between dischargeable and non-dischargeable debt.

Why are certain debts "non-dischargeable?"

Although bankruptcy is a practical way to rid yourself of overwhelming debt, you must understand that this will not necessarily free you of all financial obligations. Certain debts are considered to be "non-dischargeable" under the U.S. Bankruptcy Code for a variety of reasons. First, the bankruptcy court is prohibited from waiving specific types of debt—including state and federal taxes, overdue child support and student loans. Second, the judge can choose not to discharge certain debts if they believe that the petitioner has attempted to defraud the court, either by racking up new debt immediately before filing or concealing valuable assets. Finally, all debts that have not been included on the filer's petition will be barred from discharge—regardless of whether or not they would have otherwise qualified. For this reason, it is highly recommended that you retain the help of a Michigan bankruptcy attorney.

Examining the Types of Dischargeable Debt in Michigan

When filing under Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code, you will have the opportunity to discharge any applicable debts once the process has been concluded. Although you would be able to find relief much quicker through a Chapter 7 bankruptcy, you would still have the opportunity to rid yourself of remaining debts once you have executed a financial plan through Chapter 13.

Some of the most notable forms of dischargeable debt would include:

  • Credit card debt
  • Medical bills
  • Business debt
  • Overdue rent
  • Attorney's fees
  • Bad checks

Types of Non-Dischargeable Debt in Michigan

Although you would be able to obtain a substantial amount of financial relief once you have filed for bankruptcy, it is important to understand that you may still be held accountable for repaying certain debts after the process is over. Since some debt is considered to be "non-dischargeable," you would be legally responsible for paying back the creditors to whom you owe this debt.

Some of the most notable forms of non-dischargeable debt would include:

  • Child / spousal support
  • State & federal taxes
  • Student loans
  • Government fines
  • Parking tickets
  • Housing / rental fees

Speak with Our Michigan Bankruptcy Lawyer Today

If you are interested in learning more about the difference between dischargeable and non-dischargeable debt, Hensel Law Office, PLLC encourages you to contact our Michigan bankruptcy lawyer today. In doing so, you will have the opportunity to discuss the specific nature of your case with a legal professional who understands the in's and out's of this complex process. We are available to schedule weekend and evening appointments.

For this reason, we ask you to give us a call today at (888) 258-0651 for a free initial consultation.

Client Testimonials

  • He is respectful and down to earth with his approach to very complicated legal matters.

    “Hensel Law Office has helped me during a very difficult time in my life. Tom has done a wonderful job with my Chapter 13 case. He always kept in touch with me and explained everything in terms I could understand. I would highly recommend Mr. Hensel to anyone who is facing any bankruptcy filing. He is respectful and down to earth with his approach to very complicated legal matters.”

    Sandra

  • We have and will continue to recommend you to others in need of a fresh start.

    “Dear Tom, my husband and I wanted to express our deepest thanks for the help you gave us during our embarrassing and stressful time. I was very impressed that you returned every phone call in a timely manner. You were able to explain exactly what was going to happen in words that "we" could understand. You answered every question we threw at you. The whole bankruptcy process from start to finish was complete in the time you told us it would take. Your professionalism yet friendliness made the whole experience for us almost enjoyable... almost! We have and will continue to recommend you to others in need of a fresh start.”

    Melissa

  • Professional, competent, empathetic attorney.

    “My husband and I were forced into a position to file for Chapter 7 bankruptcy. We were devastated and mortified that we had to choose that route, but Tom eased our stress about the filing and court hearing process, as he thoroughly explained what Chapter 7 entails, as well as exactly what to expect during and after the filing process; he was accurate on each point that he advised us on. Tom also kept in frequent contact with us and responded quickly to any questions or concerns that we had while we worked with him. Tom's expertise and tact was invaluable for us, and we will absolutely recommend him to any of our friends and relatives that may find themselves in similar positions to ours. Thank you, Tom, for your dedicated help during this process.”

    EJO

  • Utmost dedication and professionalism.

    “I chose to work with Tom Hensel after meeting with several big name firms in the area. Tom handled my unique situation with the utmost dedication and professionalism. The personal service I received from him made all the difference in my case. My only regret is that I didn't call him first.”

    Craig

  • We couldn't have gotten through this difficult process without Tom.

    “We couldn't have gotten through this difficult process without Tom. We evaluated a number of bankruptcy attorneys and found Tom to be the most knowledgeable and compassionate. He takes the time to explain all aspects of the process and answers your questions thoroughly and promptly both in person and via email. He knows the law and ensures that you receive the best treatment possible depending on your particular situation.”

    T & J