There are many different types of debts – credit card, personal loan, medical bill, home equity loan, lines of credit. etc. Debt may be unsecured or secured. Unsecured debt is simply an extension of credit – you agree to pay the debt at a later date. Secured debt is an obligation for which a borrower pledges collateral as security for repayment of the debt.

The main purpose of filing a bankruptcy case is to receive a release or “discharge” of the obligation to repay debts. Federal law specifically sets forth the types of debts that are discharged in the different types of bankruptcy cases under Chapters 7, 11, 12, and 13. While federal law permits most debts to be discharged in bankruptcy, there are (always) exceptions, and some types of debts are nondischargeable.

Filing any type of bankruptcy case may provide relief, if not the ultimate solution, to problems repaying unpaid debt for items such as credit cards, medical bills, and other loans. Bankruptcy only discharges debts that are owed at the time that the bankruptcy case was filed and listed on the debtor’s bankruptcy schedules. Bankruptcy does not discharge any debts incurred after the filing of the bankruptcy case.

The attorneys at the Morrison Law Group are more than familiar with the requirements for filing bankruptcy, and those debts which are dischargeable under federal bankruptcy law under each particular chapter of the Bankruptcy Code.

Any debt incurred through fraudulent or malicious acts is not dischargeable under federal law. Any loan or extension of credit that is obtained without the present intent to repay the debt is a debt incurred by fraudulent means. Any debts that are not discharged in a bankruptcy case are therefore unaffected by the bankruptcy case and must be repaid by the bankruptcy debtor.

Federal law, through the Bankruptcy Code, also lists those debts that are exceptions to the rule regarding the discharge of debts in bankruptcy. These types of non-dischargeable debts include:

• creditors not listed on the bankruptcy schedules;
• income and property taxes;
• domestic support obligations such as alimony and child support;
• student loans;
• fines payable to any governmental unit, i.e., city or state; and
• restitution imposed as part of a criminal sentence.

The Morrison Law Group strives to achieve complete client satisfaction with the services we provide throughout a bankruptcy case, as well as the ongoing services that we provide post-bankruptcy. Not all Utah Bankruptcy attorneys can make this statement, but the Morrison Law Group is not like other Utah bankruptcy law firms. Call 801.456.9933 today to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.