which debts are owed after my bankruptcy is finished
How long will my bankruptcy filing be on my credit report.
The filing of a Chapter 7 bankruptcy case will be on your credit record for ten (10) years from the date the case is submitted to the Court. The results of a Chapter 13 bankruptcy case will be on your credit report for seven (7) years.
This does not mean you will not be able to get a house, car loan or a credit card for ten years. In fact, you can probably get new credit even before your bankruptcy is over if you chose! The question is, how much interest and fees will you have to pay and can you afford your monthly payments so you don’t end up back in a similar circumstance?
Debts discharged in your bankruptcy should be listed on your credit report as having a zero balance, meaning you no longer owe anything on the debt. Debts incorrectly reported as still having a balance will negatively affect your credit score and make it more difficult to get new credit when you decide to do so. You should check your credit report after your bankruptcy discharge and file a dispute with the credit reporting agency if any of the information contained therein is not correct. Please see our Credit Reporting Agency contact form for more information.
Which Debts Do I Still Owe After Bankruptcy?
When your bankruptcy is completed, many of your debts are “discharged.” This means they are canceled and you are no longer legally obligated to pay them.
However, certain types of debts are NOT discharged in bankruptcy. The following debts are among the debts that generally may not be canceled by bankruptcy:
• Alimony, maintenance, or other domestic support obligations for a spouse or children.
• Student loans are almost never dischargeable in a bankruptcy. In limited circumstances, if you can prove that paying them is an “undue hardship”, you may be able to ask the Court that they be eliminated, but it is still generally very difficult. Occasionally,
student loans can be cancelled when, for example, the school closed before you completed the program or if you have become
disabled. There are also options for reducing your monthly payments on student loans, even if you can’t discharge them.
• Money borrowed by fraud or false pretenses. A creditor may try to prove during your bankruptcy case that you lied or
defrauded them, so that your debt cannot be discharged. A few creditors (mainly credit card companies) accuse debtors of fraud
even when they have done nothing wrong. Their goal is to scare honest families so that they agree to reaffirm the debt. You
should never agree to reaffirm a debt if you have done nothing wrong. If the company files a fraud case and you win, the court
may order the company to pay your lawyer’s fees.
• Most taxes. The vast majority of tax debts can not be discharged. However, this can be a complicated issue. If you have tax
debts you should contact one of our Bronx attorneys to discuss the specific facts of the case to help determine if they can be
discharged.
• Most criminal fines, penalties and restitution orders. This exception includes even minor fines, including traffic tickets.
• Drunk driving injury claims.
Do I Still Owe Secured Debts Such as Mortgages and Car Loans After Bankruptcy?
Yes and No. The term “secured debt” applies when you give the lender a mortgage or lien on property as collateral for a loan. The most common types of secured debts are home mortgages and car loans. The treatment of secured debts after bankruptcy can be confusing.
Bankruptcy cancels your personal legal obligation to pay a debt, even a secured debt. This means the secured creditor can’t sue you after a bankruptcy to collect the money you owe.
But, and this is a big “but,” the creditor can still take back their collateral if you don’t pay the debt. For example, you are behind on a car loan or home mortgage, the creditor can ask the bankruptcy court for permission to repossess your car or foreclose on your home. Or the creditor can just wait until your bankruptcy is over and then do so. Although a secured creditor can’t sue you if you don’t pay, that creditor can usually take back the collateral. If you want to keep property that is collateral for a secured debt, you will need to catch up on the payments and continue to make them during and after bankruptcy and keep any required insurance.
The filing of a Chapter 7 bankruptcy case will be on your credit record for ten (10) years from the date the case is submitted to the Court. The results of a Chapter 13 bankruptcy case will be on your credit report for seven (7) years.
This does not mean you will not be able to get a house, car loan or a credit card for ten years. In fact, you can probably get new credit even before your bankruptcy is over if you chose! The question is, how much interest and fees will you have to pay and can you afford your monthly payments so you don’t end up back in a similar circumstance?
Debts discharged in your bankruptcy should be listed on your credit report as having a zero balance, meaning you no longer owe anything on the debt. Debts incorrectly reported as still having a balance will negatively affect your credit score and make it more difficult to get new credit when you decide to do so. You should check your credit report after your bankruptcy discharge and file a dispute with the credit reporting agency if any of the information contained therein is not correct. Please see our Credit Reporting Agency contact form for more information.
Which Debts Do I Still Owe After Bankruptcy?
When your bankruptcy is completed, many of your debts are “discharged.” This means they are canceled and you are no longer legally obligated to pay them.
However, certain types of debts are NOT discharged in bankruptcy. The following debts are among the debts that generally may not be canceled by bankruptcy:
• Alimony, maintenance, or other domestic support obligations for a spouse or children.
• Student loans are almost never dischargeable in a bankruptcy. In limited circumstances, if you can prove that paying them is an “undue hardship”, you may be able to ask the Court that they be eliminated, but it is still generally very difficult. Occasionally,
student loans can be cancelled when, for example, the school closed before you completed the program or if you have become
disabled. There are also options for reducing your monthly payments on student loans, even if you can’t discharge them.
• Money borrowed by fraud or false pretenses. A creditor may try to prove during your bankruptcy case that you lied or
defrauded them, so that your debt cannot be discharged. A few creditors (mainly credit card companies) accuse debtors of fraud
even when they have done nothing wrong. Their goal is to scare honest families so that they agree to reaffirm the debt. You
should never agree to reaffirm a debt if you have done nothing wrong. If the company files a fraud case and you win, the court
may order the company to pay your lawyer’s fees.
• Most taxes. The vast majority of tax debts can not be discharged. However, this can be a complicated issue. If you have tax
debts you should contact one of our Bronx attorneys to discuss the specific facts of the case to help determine if they can be
discharged.
• Most criminal fines, penalties and restitution orders. This exception includes even minor fines, including traffic tickets.
• Drunk driving injury claims.
Do I Still Owe Secured Debts Such as Mortgages and Car Loans After Bankruptcy?
Yes and No. The term “secured debt” applies when you give the lender a mortgage or lien on property as collateral for a loan. The most common types of secured debts are home mortgages and car loans. The treatment of secured debts after bankruptcy can be confusing.
Bankruptcy cancels your personal legal obligation to pay a debt, even a secured debt. This means the secured creditor can’t sue you after a bankruptcy to collect the money you owe.
But, and this is a big “but,” the creditor can still take back their collateral if you don’t pay the debt. For example, you are behind on a car loan or home mortgage, the creditor can ask the bankruptcy court for permission to repossess your car or foreclose on your home. Or the creditor can just wait until your bankruptcy is over and then do so. Although a secured creditor can’t sue you if you don’t pay, that creditor can usually take back the collateral. If you want to keep property that is collateral for a secured debt, you will need to catch up on the payments and continue to make them during and after bankruptcy and keep any required insurance.