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John F. Roberts, Esquire Jeanne E. Hovenden, Esquire
Serving all of the Greater Richmond, Virginia, Metropolitan and Tri-cities Area, and Surrounding Counties 7459 Old Hickory Drive Mechanicsville, Virginia 23111 (804) 746-4000 Richmond Area (800) 388-8298 Outside of Richmond Area (804) 746-4146 Facsimile |
The Bankruptcy Process
What Kinds Of Claims Survive Bankruptcy?
The liens of secured creditors survive bankruptcy unless the underlying debt is paid off or the lien is avoided during the bankruptcy case. This means the creditor can pursue the collateral (i.e., repossess the vehicle) but the creditor cannot collect against the debtor unless the debt has been reaffirmed. Debts that are reaffirmed during the bankruptcy case will survive.
Some debts cannot be discharged in a bankruptcy case. These nondischargeable debts include recent taxes, alimony or child support obligations, student loans and DUI claims. If a debt is nondischargeable, the debtor is legally obligated to pay the debt even after the bankruptcy filing. Other types of generally nondischargeable debt (e.g., certain debts arising from a divorce, certain cash advances on credit cards, money obtained by fraud or under false pretenses) may be discharged in a Chapter 13 case but not in a Chapter 7 case.