Discharging your Debt

Dallas Debt Discharge Attorneys: A New Financial Future

TX Chapter 7 & 13 Bankruptcy Lawyers – Bankruptcy Discharge for Debt Relief

Here at Fears Nachawati Law Firm, our Chapter 7 & 13 bankruptcy lawyers know that a new financial future is attainable after bankruptcy. The goal of bankruptcy is to help honest citizens who can no longer pay their debts get out from under their financial burdens to start anew. If everything goes as planned, Chapter 7 and Chapter 13 debtors will receive a discharge order from bankruptcy Court at the end of their bankruptcy case. The moment the order is signed by the Judge, the debtor is released from legal responsibility and personal liability for the discharged debts.

Chapter 7 Bankruptcy Discharge

Once a Chapter 7 Bankruptcy discharge order is granted, the order permanently prohibits the debtor’s creditors from initiating or following through with any collection actions, such as communication with the debtor, sending letters, telephoning or filing legal actions of any kind. The creditor is also prohibited from attaching wages or placing a levy on the debtor’s bank account.

Debts that are Not Discharged under Chapter 7 Bankruptcy

Under the U.S. Bankruptcy Code, the following types of debts cannot be discharged in a Chapter 7 bankruptcy case:

  • Debts for most educational loans
  • Debts owed to retirement or pension plans
  • Debts for criminal restitution obligations such as forfeitures, fines and penalties
  • Debts from alimony or child support obligations
  • Debts for wrongful death or personal injury, caused by the debtor’s negligent or reckless operation of a vehicle, aircraft, or vessel while legally drunk
  • Debts for payroll taxes and excise taxes
  • Debts that have been reaffirmed by the debtor (debtor signed reaffirmation agreement)

Liens that Remain After Bankruptcy

Even if a debt is discharged, creditors still have the legal right to enforce a valid lien if the lien was not removed or avoided in the bankruptcy case. This applies to tax liens, mortgages or security interests. For instance, there is a way to eliminate debts for federal income taxes in Chapter 7 bankruptcy, if the debtor meets certain complicated conditions; unfortunately, if the IRS placed a lien on your property prior to your bankruptcy filing, your debt may still be discharged in a bankruptcy, but the lien on your property could remain in place.

Chapter 13 Bankruptcy Discharge

A chapter 13 debtor is given a discharge at the end of bankruptcy when the debtor has completed all payments under his repayment plan. Just as in a Chapter 7 bankruptcy, the debtor can only receive a discharge if he has completed a credit counseling course and a debtor education course.

Once the Discharge Order is signed, creditors are barred from initiating any legal action or continuing any legal action or collection activities against the debtor to collect the now “forgiven” debts.

The Dallas debt discharge attorneys at Fears Nachawati Law Firm can explain in detail how a bankruptcy discharge may benefit you. Please contact our office today at to obtain more information about the bankruptcy process.