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Nondischargeable Debt- These are debts that are not dischargeable in bankruptcy because creditors file objections to discharge or as a matter of law. Debts excepted from discharge as a matter of law include, but are not limited to: consumer debts owed to one creditor totaling over $500 for luxury goods or services incurred on or within 90 days of the bankruptcy filing; cash advances totaling more than $750 obtained by the debtor on or within 70 days of the bankruptcy filing; certain taxes; debts incurred through false pretenses, fraud, or false financial statements; debts not listed on the bankruptcy schedules; alimony, maintenance and child support (domestic support obligations); debts arising out of intentional torts of the person or property of another; government fines or penalties; all student loans; debts for causing death or personal injury while driving under the influence of alcohol or drugs; debts owed to pension, profit sharing or other plans as well as loans permitted under ERISA and thrift savings plans. See 11 U.S.C. §523. Nonexempt Property- Property that is not exempt under the various New York State statutes is subject to transfer to the Trustee for the benefit of the debtor's creditors. Objections to Discharge- A form of adversary proceeding where a creditor objects to the dischargeability of a particular debt. Creditors have 60 days after the First Meeting of Creditors is scheduled to object to the discharge of their claim by serving a Summons and Complaint, or the right is waived and the debt is dischargeable. Creditors can object to the discharge of a debt incurred through false pretenses, fraud, or false financial statements. This includes loans and credit cards obtained by concealing prior loans or other debts, and credit card charges made when the debtor was unable to pay their existing debts. See 11 U.S.C. §523(a)(2). Most creditors will settle these claims for a substantial discount on the balance due. Petition- The 3 page document that initiates the bankruptcy case when it is filed. It contains the debtor's name, address, and social security. It must state the facts necessary to establish the district in which the case should be filed, alleges that the debtor is entitled to relief under the Bankruptcy Code, and identifies the Chapter of the Code under which relief is sought. The Petition may be filed without the Schedules and Forms in an emergency, but they must be filed within 15 days of filing the petition or the bankruptcy case will be dismissed. See Fed. R. Bankr. Pro. 1017. |
Bankruptcy Glossary of Terms
Part 6 of 9