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Some Of My Creditors Told Me They Can’t Be Discharged in a St Louis Bankruptcy. Is That True?


It depends on which kind of creditors you’re talking about, and which type of St. Louis bankruptcy you are filing. In some cases it is true that the creditor cannot be knocked out. But more often than not, it is an unsecured creditor that is giving out this kind of information (like a payday loan company, or a collection agency). And those entities will very frequently tell you things that completely and totally inaccurate.

For example, let’s say you have filed a St. Louis Chapter 7 bankruptcy. This kind of bankruptcy is commonly described as a discharge of unsecured debts (like credit cards, medical bills, old overdrawn bank accounts, etc.). The word “discharge” means exactly what you think it does. It means that those debts are knocked out forever (almost as if they never existed). Of course, there are in fact some debts that cannot be discharged. Examples of this would be most tax debt, back child support, and student loans. Or if you took out a credit card fraudulently (by using a false social security number), then that type of debt cannot be discharged either. And one more example would be if you made substantial transactions on a credit card just before filing for bankruptcy (like charging up thousands of dollars at Best Buy, and then turning around and quickly filing a bk).

But aside from these examples, all other debts are discharged by the bankruptcy court. So why would a creditor tell you something different? Well, to be perfectly honest, there are a lot of entities that care very little for how the law works (or have a very low desire to follow the law). A good example would be a payday loan company (especially those online companies that quite often do not have a physical address). They will insist that the debts owed to them cannot be discharged in your bankruptcy. And if every one out a hundred or so people believe the incorrect information, then the payday loan company gets a few extra bucks (that legally were knocked out by the federal government).


It’s a sleazy tactic to be sure (not to mention against the law)! But it works just often enough that they continue to employ the method. And this is precisely why it is so important to hire a good St. Louis bankruptcy attorney to help you out. We can describe your rights under the law, answer all of your questions, and guide you through the process from start to finish!!

We have one location by appointment only: 4625 Lindell Blvd St. Louis, MO 63108. The initial consultation to discuss your debt related issues is free of charge. So contact us today to learn more!!

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