Legal Question in Bankruptcy in Pennsylvania

Re: dischargable debts

As you may know, there are generally two types of bankruptcies for consumers, Chapter 7 and 13. The former is generally for those who simply require the elimination of unsecured debt such as credit cards. The latter is generally for those who have fallen behind in secured debt such as a mortgage. Chapter 13 allows you to repay any arrears over five years.

Student loan debt is not dischargeable. Judgments are to the extent that they are personal liabilities. If you own real estate in the County where the judgment was entered, that judgment becomes a lien on that property. Under certain circumstances, the lien can be removed in the bankruptcy.

Therefore, assuming you otherwise qualify, you should consider filing. You should speak with experienced bankruptcy counsel to discuss all the ramifications.

I trust this has been helpful, but feel free to call or e-mail with further questions.

Re: dischargable debts

Short answer -- most of the debts you mentioned are dischargeable.

The credit cards and the old utility bill are dischargeable. The issue with respect to the judgment is not whether or not there is a judgment but rather what is the basis for the judgement. If the judgment is simply another credit card or similar creditor who sued you and obtained judgment then it will be discharged.

Section 523 lists the types of debts that are not dischargeable. If the basis for the judgment stems from one of these types of debts it will not be dischargeable. (I will put the types of debts in all caps as I answer) For example, TAXES are basically nondischargeable so a judgment for taxes would not be dischargeable. If it the judgment against you is based on FRAUDulent actions on your part, then the judgment is nondischargeable. A judgment for CHILD SUPPORT OR ALIMONY is nondischargeable. A judgment based on you causing WILLFUL AND MALICIOUS INJURY is nondischargeable. Also judgments pertaining to your DRIVING WHILE INTOXICATED and most MISDEMEANOR FINES are nondischargeable.

Section 523 also lists as nondischargeable student loan debts. However, there is a slight ability to petition the court to have the debt discharged if a) it is over seven years old or b) it can be shown that repayment is extremely burdensome on the person and/or family in bankruptcy. Proving the extreme burden requirement is generally pretty difficult. However, if you file under Ch. 7 you will not have to repay the debt during the time you are in bankruptcy (approx. 4 months). After your case is concluded this debt would still exist. Assuming all your other debts were discharged you will be in a better position to make a monthly payment to this creditor. ph. (800) 303-0720

Re: dischargable debts

You should be able to discarge all of the debts that you describe in your question. The only time that a judgement cannot be discharged is when it is based on child support or an intentional act.