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A discharge isn't guaranteed in a Chapter 7 bankruptcy

If someone tells a Texas resident otherwise, he or she should probably run the other way. While most people do receive a discharge from a Chapter 7 bankruptcy, there is no guarantee it will happen. However, knowing the circumstances under which one may not be given could help increase the likelihood of receiving one.

First, Texas consumers contemplating filing bankruptcy should know that not all debts are eligible for discharge such as most taxes, student loans and child support. Moreover, if a filer neglects to include a debt ordinarily eligible, he or she remains responsible for it even if a discharge is received. A consumer may decide to reaffirm a debt with a creditor such as a mortgage or auto lender in order to retain an asset.

Those are just the normal circumstances under which a person may remain responsible for the payment of a debt after bankruptcy. Less common circumstances include failing to complete the required financial management course, failing to adequately explain a loss of assets or failing to obey the court's lawful orders. Of course, lying to the court (committing perjury) may also keep a filer from receiving a discharge. Fraudulently transferring, destroying or concealing property would also result in a dismissal of the case, at the very least.

In order to gain a better understanding of how the discharge process works in a Chapter 7 bankruptcy, it might be a good idea for a Texas resident considering it to sit down with an attorney experienced in this area of law. Other questions regarding this debt relief option may also be answered during that time. If it turns out that this would be a viable and preferable option for dealing with the current financial situation, then a consumer could also benefit from some assistance in the matter as well since it can be complex and stressful.

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