The United States Bankruptcy Code states generally that debts of individuals can be discharged and then lists some exceptions to this general rule. If a debt is discharged, that means that the creditor can not take any further action to collect the debt in the future. Many debts can be discharged through Washington Bankruptcy.
Certain kinds of debts are never discharged through Washington Bankruptcy. These non-dischargeable debts include child support, maintenance, alimony or any other debt arising from an action for the dissolution of a marriage, or a child custody proceeding. Damages arising out of an auto accident which involved drunk driving, criminal fines, or restitution, and most taxes are not dischargeable.
Generally back taxes are not dischargeable unless the tax is more than three years old.
A Washington Bankruptcy Court will not discharge a debt where fraud was present, or there was wilful or malicious injury. If you gave false information on a credit application and a creditor granted a loan based on that false information, that particular debt can be excepted from your discharge.
The law presumes that you know you are going to file Washington Bankruptcy 90 days before you do so. Whether or not this is factually true does not matter. Therefore, if you make a luxury charge on a credit card within that time period, or take a significant cash advance, you are presumed to have done so fraudulently, knowing you were going to file Washington bankruptcy and not pay back the loan.
It is very difficult to obtain a discharge of a student loan because you must prove that repayment would create an “undue hardship” for you. The Courts have severely limited the cases in which an “undue hardship” has been found. You should not plan on discharging your student loan by declaring Washington Bankruptcy. However, many individuals find that when they no longer have to pay high interest credit cards, they have funds available to make monthly payments on their student loans.
Robert J. Reynolds P.S. has 30 years of experience in evaluating which of your debts may not be discharged if you choose to file a Washington Bankruptcy Petition.
Due to the current recession our financial situation was awful. The money that my wife and I were making was insufficient to cover our monthly bills. Trying to find a solution to our financial struggle, I talked to a friend, and she recommended that we talk to Mr. Reynolds. Today, we are free and clear of debt, and our financial situation has improved. Thanks to Mr. Reynolds, we are happy again.