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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:

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

  • Tom Hensel is definitely the right attorney to call!

    “I was referred to Tom Hensel by a friend. My first impression was not only was Tom professional but he's so kind and caring too. He helped my husband and I through an embarrassing, scary situation and definitely made it more positive one. He guided us through our options and helped us make the right decision for us which ended up being a chapter 7 bankruptcy. Tom was so knowledgeable and helped us throughout the whole process. He never once made us feel uncomfortable or dumb when we had questions. He was also very easy to get a hold of when questions would come up and would always return our calls and emails promptly. I strongly recommend Tom to anyone going through this kind of financial nightmare. Do yourselves a favor and call him right away. He will help you get on the right path again. Our only mistake was waiting so long to call him!! When we in court waiting our turn all the other attorneys referred to their clients as "The debtors" Tom on the other hand acknowledged us by our names. Little things mean a lot and that left a lasting impression with us. Tom Thank You again for all your help!!”

    Stacy S.

  • Mr. Hensel walked me through every step.

    “I would highly recommend the Hensel Law Office!! Mr. Hensel walked me through every step, got my garnishments stopped very quickly (even got garnished wages returned to me!) and told me what to expect along the way. He answered all of my questions in a very timely manner- no matter what time I sent an email or gave him a phone call. Also, I felt his price was very reasonable compared to some of the other places that I called. Mr. Hensel answered plenty of questions that I had before I even became a client.”

    Carl

  • His knowledge and expertise made a very difficult time in our lives much easier.

    “From start to finish our experience with Mr. Hensel was great. He carefully and thoroughly explained the entire process to us and was always available for any questions or concerns we had. His knowledge and expertise made a very difficult time in our lives much easier. We are very thankful for his help in our situation.”

    Christine and John

  • You made a difficult experience so much easier.

    “Back a few years ago, you helped me through a bankruptcy. I still tell people how you made a difficult experience so much easier, with your clarity, support, and friendly approach to the law. I'm still very appreciative for all your help – it really helped to pull me out of a difficult place and put my life back on track.”

    Eric

  • 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