Bankruptcy exemptions play a large role in both Chapter 7 and Chapter 13 bankruptcy. It's important to know what property is exempt in your state. Below you'll find articles on the most common bankruptcy exemptions in each of the 50 states. Bankruptcy Attorneys in Gnadenhutten, OH CCPA. About Search Results. Bankruptcy Law Attorneys Accident & Property Damage Attorneys Attorneys. Website Services () W Main St. Sugarcreek, OH Matthew P Mullen Atty. Bankruptcy Law Attorneys Attorneys General Practice Attorneys. What is a discharge in bankruptcy? A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged. The discharge is a permanent order prohibiting the creditors of the debtor from taking any form of collection action on discharged debts, including legal action.
Filing Without an Attorney. For information regarding the U. Our mission is to uphold the integrity of the judicial process by accurately maintaining the records of the Court and providing exceptional service to those seeking justice through the bankruptcy system.
We are committed to treating all individuals, whether experiencing financial difficulties or protecting their interest, with fairness, respect, and professionalism. Home Glossary of Legal Terms.
Skip to main content. Hopkins, Chief Judge Richard B. Jones, Clerk of Court. Search form. Text Size: Decrease font size Reset font size Increase font size. Not all debts are discharged. The debts discharged vary under each chapter of the Bankruptcy Code. Section a of the Code specifically excepts various categories of debts from the discharge granted to individual debtors.
Therefore, the debtor must still repay those debts after bankruptcy. Congress has determined that these types of debts are not dischargeable for public policy reasons based either on the nature of the debt or the fact that the debts were incurred due to improper behavior of the debtor, such as the debtor's drunken driving.
There are 19 categories of debt excepted from discharge under chapters 7, 11, and A more limited list of exceptions applies to cases under chapter Generally speaking, the exceptions to discharge apply automatically if the language prescribed by section a applies. The most common types of nondischargeable debts are certain types of tax claims, debts not set forth by the debtor on the lists and schedules the debtor must file with the court, debts for spousal or child support or alimony, debts for willful and malicious injuries to person or property, debts to governmental units for fines and penalties, debts for most government funded or guaranteed educational loans or benefit overpayments, debts for personal injury caused by the debtor's operation of a motor vehicle while intoxicated, debts owed to certain tax-advantaged retirement plans, and debts for certain condominium or cooperative housing fees.
The types of debts described in sections a 2 , 4 , and 6 obligations affected by fraud or maliciousness are not automatically excepted from discharge. Creditors must ask the court to determine that these debts are excepted from discharge.
In the absence of an affirmative request by the creditor and the granting of the request by the court, the types of debts set out in sections a 2 , 4 , and 6 will be discharged. A slightly broader discharge of debts is available to a debtor in a chapter 13 case than in a chapter 7 case. Debts dischargeable in a chapter 13, but not in chapter 7, include debts for willful and malicious injury to property, debts incurred to pay non-dischargeable tax obligations, and debts arising from property settlements in divorce or separation proceedings.
Although a chapter 13 debtor generally receives a discharge only after completing all payments required by the court-approved i. Such a discharge is available only to a debtor whose failure to complete plan payments is due to circumstances beyond the debtor's control.
The scope of a chapter 13 "hardship discharge" is similar to that in a chapter 7 case with regard to the types of debts that are excepted from the discharge. A hardship discharge also is available in chapter 12 if the failure to complete plan payments is due to "circumstances for which the debtor should not justly be held accountable.
In chapter 7 cases, the debtor does not have an absolute right to a discharge. An objection to the debtor's discharge may be filed by a creditor, by the trustee in the case, or by the U.
Creditors receive a notice shortly after the case is filed that sets forth much important information, including the deadline for objecting to the discharge. To object to the debtor's discharge, a creditor must file a complaint in the bankruptcy court before the deadline set out in the notice.
Filing a complaint starts a lawsuit referred to in bankruptcy as an "adversary proceeding. The court may deny a chapter 7 discharge for any of the reasons described in section a of the Bankruptcy Code, including failure to provide requested tax documents; failure to complete a course on personal financial management; transfer or concealment of property with intent to hinder, delay, or defraud creditors; destruction or concealment of books or records; perjury and other fraudulent acts; failure to account for the loss of assets; violation of a court order or an earlier discharge in an earlier case commenced within certain time frames discussed below before the date the petition was filed.
If the issue of the debtor's right to a discharge goes to trial, the objecting party has the burden of proving all the facts essential to the objection. In chapter 12 and chapter 13 cases, the debtor is usually entitled to a discharge upon completion of all payments under the plan.
As in chapter 7, however, discharge may not occur in chapter 13 if the debtor fails to complete a required course on personal financial management. A debtor is also ineligible for a discharge in chapter 13 if he or she received a prior discharge in another case commenced within time frames discussed the next paragraph.
Unlike chapter 7, creditors do not have standing to object to the discharge of a chapter 12 or chapter 13 debtor.
Creditors can object to confirmation of the repayment plan, but cannot object to the discharge if the debtor has completed making plan payments. The court will deny a discharge in a later chapter 7 case if the debtor received a discharge under chapter 7 or chapter 11 in a case filed within eight years before the second petition is filed.
The court will also deny a chapter 7 discharge if the debtor previously received a discharge in a chapter 12 or chapter 13 case filed within six years before the date of the filing of the second case unless 1 the debtor paid all "allowed unsecured" claims in the earlier case in full, or 2 the debtor made payments under the plan in the earlier case totaling at least 70 percent of the allowed unsecured claims and the debtor's plan was proposed in good faith and the payments represented the debtor's best effort.
A debtor is ineligible for discharge under chapter 13 if he or she received a prior discharge in a chapter 7, 11, or 12 case filed four years before the current case or in a chapter 13 case filed two years before the current case.
The court may revoke a discharge under certain circumstances. For example, a trustee, creditor, or the U. Typically, a request to revoke the debtor's discharge must be filed within one year of the discharge or, in some cases, before the date that the case is closed. The court will decide whether such allegations are true and, if so, whether to revoke the discharge.
In chapter 11, 12, and 13 cases, if confirmation of a plan or the discharge is obtained through fraud, the court can revoke the order of confirmation or discharge. A debtor who has received a discharge may voluntarily repay any discharged debt.
A debtor may repay a discharged debt even though it can no longer be legally enforced. Sometimes a debtor agrees to repay a debt because it is owed to a family member or because it represents an obligation to an individual for whom the debtor's reputation is important, such as a family doctor. If a creditor attempts collection efforts on a discharged debt, the debtor can file a motion with the court, reporting the action and asking that the case be reopened to address the matter.
The bankruptcy court will often do so to ensure that the discharge is not violated. The discharge constitutes a permanent statutory injunction prohibiting creditors from taking any action, including the filing of a lawsuit, designed to collect a discharged debt.