Filing Chapter 7 in Texas

Discharge

Generally, the Bankruptcy Court will enter a discharge order in your case about 3 months after the Meeting of Creditors. The discharge order relieves you of the obligation of repaying the unsecured debts you listed in your bankruptcy paperwork as well as any deficiency claim which may come about from surrendering homes, cars, etc. The discharge order is a permanent injunction against the mentioned  creditors preventing them from collecting on their claims.

When you get the discharge order:

  1. Keep it with your other legal documents such as your will or car titles. If a creditor tries to collect on a discharged debt, forward a copy of the discharge order to the creditor and that should stop the collection action.
  2. Please note that only debts that you incurred before the filing of your Chapter 7 case are dischargeable.  Any debt, including rent, association fees, utilities, or other services, incurred after the filing of your Chapter 7 case are not discharged.
  3. Once you file a Chapter 7 case and receive a discharge, you will not be eligible for another Chapter 7 discharge unless eights years have passed from the date of the filing of the first Chapter 7 case.

There are several types of debts which will not be discharged or relieved through a Chapter 7 bankruptcy. These include but are not limited to:

  • debts for federal income taxes that counting backwards from the date of the filing of the bankruptcy (a) the returns for which have been due for less than three years, (b) have been assessed within 240 days, or (c) the returns for which have been on file less than two years or have not been filed at all.
  • debts associated with filing a fraudulent income tax return.
  • debts for “trust fund” taxes, such as employment withholding tax, sales tax, etc.
  • debts for domestic support obligations such as child support, spousal support and alimony.
  • debts to governmental units for fines, penalties or restitution.
  • student loans and their consolidation.
  • debts that came about for operating a motor vehicle, boat or airplane while under influence.
  • debts for property settlement reached in a divorce or separation agreement.

There are several types of debts which may end up not getting discharged or relieved through a Chapter 7 bankruptcy. These include but are not limited to:

  • debts for fraud, false misrepresenatation or false pretenses.
  • debts of more than $500 for “luxuary goods and services,” incurred within 90 days or less before filing bankruptcy.
  • debts of more than $750 for “cash advnaces,” incurred within 70 days or less before filing bankruptcy.
  • debts which were not listed in the bankruptcy paperwork.
  • debts for violation of fiduciary duty, embezzlement or larceny.
  • debts that are the result of intentionally injuring another individual or property of another.

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