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All Debts Discharged

Are all of the debts discharged?

Bankruptcy: not all debts discharged. The debts discharged vary under each chapter of the Bankruptcy Code. Section 523(a) of the Code specifically excepts various categories of debts from the discharge granted to individual debtors. Therefore, the debtor must still repay those debts after bankruptcy. Congress has determined that these types of debts are not dischargeable.  Public policy reasons do not allow the discharge of certain debts.  Debts incurred for drunk driving injuries to another is one example.

Chapters 7, 11, 12,  lists 19 categories of debt excepted from discharge. A more limited list of exceptions applies to cases under chapter 13.

Generally speaking, the exceptions to discharge apply automatically if the language prescribed by section 523(a) applies. The most common types of nondischargeable debts are certain types of tax claims, debts not set forth by the debtor on the lists and schedules the debtor must file with the court, debts for spousal or child support or alimony, debts for willful and malicious injuries to person or property, debts to governmental units for fines and penalties, debts for most government funded or guaranteed educational loans or benefit overpayments, debts for personal injury caused by the debtor’s operation of a motor vehicle while intoxicated, debts owed to certain tax-advantaged retirement plans, and debts for certain condominium or cooperative housing fees.

The types of debts described in sections 523(a)(2), (4), and (6).  Obligations obtained by fraud or maliciousness not automatically excepted from discharge. Creditors must ask the court to determine that these debts excepted from discharge. Discharge can apply to the debts listed in sections 523(a)(2), (4), and (6).  Only with the absence of an affirmative request by the creditor and the granting of the request by the court.

A slightly broader discharge of debts is available to a debtor in a chapter 13 case than in a chapter 7 case. Debts dischargeable in a chapter 13, but not in chapter 7.  This includes debts for willful and malicious injury to property, debts incurred to pay non-dischargeable tax obligations.  Also debts arising from property settlements in divorce or separation proceedings. Although a chapter 13 debtor generally receives a discharge only after completing all payments required by the court.  There are some limited circumstances under which the debtor may request the court to grant a “hardship discharge.”  Even though the debtor has failed to complete plan payments.

Such a discharge is available only to a certain debtors.  Failure to complete plan payments is due to circumstances beyond the debtor’s control. The scope of a chapter 13 “hardship discharge” is similar to that in a chapter 7 case. With regards to the types of debts that are excepted from the discharge. A hardship discharge also is available in chapter 12.  Failure to complete plan payments.  If due to “circumstances for which the debtor should not justly be held accountable.”

If you have specific questions please call Bucacci And Simonian at 508-673-9500 or visit our website.

Social Media and Filing Bankruptcy in Massachusetts

Social Media And Filing Bankruptcy in Massachusetts

Many people share personal details of their lives on social media.  Social media and bankruptcy in Massachusetts may have consequences.  Post like vacations they take, places they shop, purchases they make, and even what they wear. This kind of sharing can sometimes have legal consequences. One example would be an angry post about a soon to be ex spouse could cause problems in a pending divorce.  Also, posts that exaggerate your financial situation could cause you problems in bankruptcy.  It is never wise to post information that exaggerates your lifestyle before, during or after filing bankruptcy.  Viewers of your post and creditors could misinterpret it and use it against you.  One example shows just how problematic things can be when you are not careful on social media.

Bankruptcy Filing and Social Media Problems

In 2015, the musician 50 Cent filed for Chapter 11 bankruptcy protection. During his bankruptcy he posted several photographs with a lot of money. He displayed a stack of money in his freezer.  50 Cent also posted a photograph of himself surrounded by piles of cash on a bed.  He claimed the bills were props, such as those used in music videos.  The creditors and the bankruptcy judge were not impressed and not amused by those pictures.

According to the New York Times, 50 Cent stated that the postings were important to maintaining his image and for promotion of his music. This made it difficult to determine whether he was hiding assets or money.  This made it difficult to see if he was telling the truth.   His creditors now asked to revalue his assets.  The bankruptcy judge asked him to reappear in court.

Fortunately he received a large settlement from a lawsuit and was able to pay off his creditors in a short period of time.  As you can see, it can be dangerous to post on social media if you are going through bankruptcy.

Be Careful What You Post and Share

Creditors do not know anything about you. People who do not know you can easily misinterpret your social media posts. Pictures of a business trip could be seen or interpreted as a vacation when posted on social media.   Visiting a relative out of state for an emergency can look like a vacation.  Eating at a fancy restaurant for a family event could look extravagant.  Be careful of what you post on social media before and after filing bankruptcy.

If you are considering filing bankruptcy in Massachusetts you should consult with an experienced bankruptcy attorney.  It is not wise to take advice from friends and family.  Also, trying to sort through the information on the internet could get you in trouble.  A lot of the information on the internet about bankruptcy is very general and can easily be misinterpreted.  It is always advisable to consult with an experienced bankruptcy attorney.  Call us anytime to discuss your options.  You can also visit our website to schedule an appointment.  The consultation is always free.

 

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