Filing a Chapter 7 case is not a criminal offense. A person does not lose any civil or constitutional rights by filing.

Effect of Bankruptcy on Court-Ordered Debt

Although bankruptcy can discharge many types of debt, it's important to note that court-ordered legal debt is not dischargeable. This includes:

  • Alimony
  • Spousal support
  • Criminal fees and restitution
  • Traffic tickets and other fines for violating the law
  • Personal injury debt related to driving while intoxicated
  • Federal, state, and municipal taxes

Effect of Bankruptcy on Debt Collection Attempts

One important legal right is actually gained by filing for bankruptcy: the automatic stay. This prevents debtors from calling, repossessing your property, or garnishing your wages in an attempt to collect the debt. 

If a creditor violates the automatic stay, they can be held liable for actual and punitive damages as well as attorney fees. 

Learn More

To learn more or get started on your Chapter 7 bankruptcy case, contact Steffens Law Office today. Our experienced bankruptcy attorney can explain your options and structure your case in a way that maximizes your exempt property.