One of the primary reasons that a person files a Chapter 7 Bankruptcy Case is to receive a discharge of their debts.  A discharge is an Order entered by the Bankruptcy Court that forgives debts that cannot be repaid by a Debtor. Most, but not all debts are dischargeable in a Chapter 7 Bankruptcy Case. If a debt is discharged in bankruptcy, the creditor cannot ever attempt to collect the debt from the Debtor again, although if a creditor holds a lien against property of the debtor, and the lien survives after the bankruptcy case, the Creditor may be able to exercise its’ lien rights against the property.

Generally, all individuals who qualify for Chapter 7 are eligible to receive a discharge of their debts in a Chapter 7 Case.  There are certain important exceptions:

  1. You may not receive a Chapter 7 discharge if you received a previous Chapter 7 discharge in a case filed within the last 8 years;
  2. You may not receive a Chapter 7 discharge if you received a previous Chapter 13 discharge in a case filed within the last 6 years, unless your unsecured claims were paid in full (100%) or the Court finds that 70% of your unsecured claims were paid and the plan was proposed in good faith and was your best effort.

If you have had a previous bankruptcy, you should call (205)870-8480 today to speak with one of the Birmingham Bankruptcy Lawyers at Over the Mountain Law Center, LLC.  We will discuss your eligibility for Chapter 7 and ensure that you are properly advised as to your rights under Bankruptcy Law.