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Bankruptcy Discharge

For someone who does not have experience with bankruptcy, the process is likely to invoke a sense of anxiety that can be overwhelming. There are seemingly countless factors involved, with many that have the potential to grind the procedure to a halt if done incorrectly. One of the most complicated aspects of bankruptcy, which has the tendency to confuse those not well informed on the matter, is the bankruptcy discharge.

Essential to the process, a discharge is what allows the individual or family from Ohio or Kentucky to have a "fresh start" because of the fact that it takes certain debts completely off your books. Considering the importance of a discharge in general, there are many rules that dictate what is and is not dischargeable in bankruptcy.

Knowing exactly what to do when considering bankruptcy is not likely unless you have a strong comprehension of the laws regarding the process. Particularly when it comes to knowing what you are allowed to discharge, having an authority on the matter will make the filing much easier. With the help of a Kentucky or Cincinnati bankruptcy attorney, you will have a resource that will allow you to approach this situation in the most productive and efficient manner possible, enabling for a straightforward and transparent proceeding.

Greater Cincinnati and Northern Kentucky Bankruptcy Discharge

Steiden Law Offices is well versed and experienced with bankruptcy law in both Kentucky and Ohio. With over 25 years of experience working with individuals and businesses, Eric Steiden is prepared to take on such an important legal issue and will do everything in his power to make certain that you are well taken care of during this difficult time.

Honesty and integrity guide the decision-making at Steiden Law Offices. The law firm has a positive reputation among Ohio and Kentucky bankruptcy courts and has developed a strong practice based on honesty and integrity. With Steiden Law Offices, you are in good hands. Prided itself on a quick response time, the firm will be able to get started on your filing immediately.

In addition to his two Kentucky locations in Covington and Florence, Eric Steiden also has two Ohio offices, both of which are in Cincinnati. Eric is dedicated to helping his neighbors get out of debt and on to the next productive stage in their life. Working with individuals and families throughout Hamilton County, Eric and staff are ready and willing to change the lives of Ohio residents for the better.

To schedule a free consultation in order to go over the specifics of your legal financial issues, call (888) 877-3328 or send an online message today. The Steiden Law Offices proudly represent individuals throughout Ohio and Kentucky, including Hamilton County, Kenton County and Boone County.

Bankruptcy Discharge Information Center

• What is a Bankruptcy Discharge?
• What Is and Is Not Dischargeable in Bankruptcy 
• Hardship Discharge
• Bankruptcy Discharge Resources

What is a Bankruptcy Discharge?

Before learning what is and is not dischargeable, there needs to be a general understanding of a discharge first. A bankruptcy discharge is a statutory injunction against the start or continuation of an action to collect, recover or offset a debt as a personal liability to the debtor.

In simple terms, a discharge releases the debtor from personal liability for certain types of debts. This means that they are no longer legally required to pay any debts that were discharged. The discharge is a permanent order prohibiting the creditors of the debtor from taking any form of collection action on discharged debts, including legal action and communications with the debtor, such as telephone calls, letters, and personal contact.

A discharge is one of the primary benefits afforded under the United States Bankruptcy Code and is essential in the process. Not only does it allow for a fresh start, it also plays an important role in credit markets by giving lenders more encouragement to loan out money and limit risk.

A discharge of debts can be granted to debtors but can also be denied or revoked by the court depending on the conduct (or rather, misconduct) of the individual in debt, including fraudulent actions or failure of a debtor to disclose all assets during a filing.

What Is and Is Not Dischargeable in Bankruptcy

Having a firm grasp of what is and is not dischargeable will save you a great deal of legwork. Knowing the debts you are able to discharge will allow you to focus intently on the areas that you have control over. The following are dischargeable:

• Unsecured debt
• Credit card debt
• Repossession deficiencies
• Auto accident claims
• Leases
• Restitution for willful or malicious property damage (Chapter 13 only)
• Property settlements from a divorce or legal separation (Chapter 13 only)

The following are non-dischargeable debts:

• Fines and restitution
• Domestic support obligations (child support / alimony)
• Taxes and tax liens
• Debts incurred by fraud, false pretense, embezzlement or larceny
• Government fines such as traffic tickets
• Debts for willful and malicious injury
• Judgments in wrongful death or personal injury cases arising from your intoxication
• Student loans
• Unscheduled debts
• Debts incurred after filing your case, which weren't included in your Chapter 13 plan
• Interest owed on non dischargeable debts

Denied Discharge

A debtor can be denied a discharge of all of his or her debts if the court finds that the debtor committed certain acts deemed incompatible with the "honest but unfortunate debtor." Such acts that may result in denial of discharge include:

• Transferring, concealing or destroying assets or financial records; 
• Making a false oath on the schedules or under oath in the case; or
• Failing to keep books and records from which the debtor's financial condition can be properly analyzed. 

Hardship Discharge

For those who file for bankruptcy and set up a repayment plan, but are not able to continue making those payments, there is a possibility that they could file for what is called a hardship discharge. This will enable you to discharge specific types of debt that are part of the repayment plan (does not include Chapter 7 non-dischargeable debts). The requirements for a hardship discharge include an inability to complete payments due to circumstances "which the debtor should not justly be held accountable," or an inability to modify the plan to enough of an extent to fix the problem.

The court is the only authority who can grant these types of discharges. Individuals need to have an inability to pay due to circumstances beyond the control of the individual to qualify for a hardship discharge. Hardship discharge cannot take place before the debtor has paid creditors the amount that would have been received from a Chapter 7 bankruptcy. Additionally, it is not possible to revise the existing repayment plan to match the new financial circumstances.

Bankruptcy Discharge Resources

United States Courts – Discharge – This is the link to the Bankruptcy section of the U.S. Courts website. It contains information on discharge in bankruptcy, including what a discharge is, when it occurs, who is eligible and what the process is regarding discharges.

U.S. Bankruptcy Discharge Statute – This is a link to the Cornell University Law School statute database. It contains the exact legal wording of a discharge, which can be found under Chapter 11 §1328 of the United States Bankruptcy Code.

United States Bankruptcy Court – Southern Ohio – The primary site for Cincinnati and surrounding area residents who need to file for bankruptcy. It provides information on judges, cases, locations, phone numbers, FAQs, means testing, filing and seminars. It also allows you to search local rules and previous court opinions.

Steiden Law Offices | Florence Bankruptcy Discharge

If you currently have debt issues and are unable to find an easy solution, then bankruptcy may be your best bet. Taking advantage of the bankruptcy discharge process allows you to have the ability to wipe the slate clean so you can get back on your feet and moving forward again. Although a long and complicated process, fixing your legal financial issues is paramount in being able to live life the way you want.

Steiden Law Offices has been helping people fix their monetary problems for over 25 years and has gained a tremendous amount of insight from this. With the legal knowledge necessary to effectively lead you through an intimidating process, Eric Steiden can be counted on to provide excellent client service while making certain nothing is left to chance.

With four office locations in Cincinnati, Covington, and Florence, Eric Steiden and staff are readily available to help you pursue a bankruptcy discharge. The law office is deeply committed to helping Midwestern families immediately respond to and overcome severe financial burdens.

To schedule a free consultation to go over your financial situation with Steiden Law Offices, call (888) 877-3328 or send an online message. Eric Steiden proudly represents individuals throughout southern Ohio and Northern Kentucky, including the cities of Cincinnati, Norwood, Forest Park, Blue Ash, Erlanger, Edgewood and Elsmere, among others.