New York bankruptcy dischargeable debts refers to those unsecured debts that may be eliminated by filing bankruptcy. A discharge is the official notice by the court releasing you from the obligation to pay back certain debt. Although very powerful, a New York Chapter 7 bankruptcy discharge does not eliminate all debt. Keep in mind that only debt incurred prior to your bankruptcy filing may be discharged. You will still be obligated to pay any debt that was granted to you after you file bankruptcy and before you received your discharge. If there are any indications of fraud or misconduct in connection with any debt, it will not be discharged.
New York Bankruptcy Dischargeable Debts Include:
- Credit card debt. Most often than not, credit card debt is one of the main reasons individuals file for bankruptcy. Fortunately, bankruptcy laws does categorize credit card defaults as New York bankruptcy dischargeable debt. However, there are a few rare circumstances in which credit card debt may not be discharged, for example, if you purchased a luxury item immediately prior to your bankruptcy filing, or for cases involving fraud.
- Medical Bills. For those individuals filing bankruptcy as a result of overwhelming medical bills, a Chapter 7 bankruptcy may provide relief.
- Lawsuit judgments. If you were involved in a civil lawsuit that resulted in a judgement against you, any monies owed can be discharged in a Chapter 7 bankruptcy irrespective of the facts leading to the lawsuit.
- Personal loans and Promissory notes. Personal loans and promissory notes are almost always discharged when you file for a Chapter 7 bankruptcy, unless the creditor can prove that you obtained it by providing fraudulent information.
- Money owed under lease agreements. This includes past rent.
- Accident claims. Auto accident claims may only be discharged if there was no drinking and driving involved.
- Collection agency accounts.
- Civil Court judgements that are not based on fraud.
- Utility bills. Defaulted utility bills are considered as New York bankruptcy dischargeable debt.
- Veterans over assistance and loan overpayments.
- Repossession deficiency balances.
- Student loans in special circumstances only.