If you fall on hard times and require relief from financial burdens, you can file for bankruptcy for relief based on your circumstances. Doing so could help you settle as much debt as possible as you get back on your feet.
This process can also help you seek a discharge order, which could remove your liability for specific types of debt. Since you are no longer responsible for them, you might not be pressured to make repayments, depending on the circumstances. This court order can significantly alleviate your financial burdens, but some debt types are not qualified for discharge, including the following:
- Debt brought by personal injury claims or lawsuits
- Student loan payments
- Fines and other penalties related to offenses or crimes
- Divorce-related support, such as spousal or child support
- Debt obtained after filing for bankruptcy
- Other overdue payments deemed nondischargeable
Remember that there is no guarantee that the court will grant you a discharge. Sometimes, the judge will consider other factors, such as your involvement in fraud or other dishonest activities. The court might also deny discharge if you provide deceiving or false information about your bankruptcy case. Ultimately, your eligibility for discharge significantly varies, depending on your case details and situation.
Knowing if you are qualified for discharge
You should manage your expectations when filing for bankruptcy. The law has specific restrictions when issuing court orders, making it unpredictable even if you do everything right. You could prepare appropriately to ensure your bankruptcy case considers all eligible debts, but there is no assurance of discharge.
You might also be ineligible if you have already received a discharge for a previous bankruptcy case or have a history of violating court orders. In these situations, seeking legal counsel can help you determine your options and follow the process correctly.