What to do about a pre-bankruptcy debt?

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What to do about a pre-bankruptcy debt?

I received a notice of deficiency for 3 years ago showing a canceled debt from a credit card. I filed for bankruptcy last year and included the canceled debt in the bankruptcy. Will filing a petition cancel out that debt or am I stuck because the occurances happened in separate years?

Asked on February 27, 2014 under Bankruptcy Law, Minnesota

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Bankruptcy in the United States is a matter placed under federal jurisdiction by the United States Constitution (in Article 1, Section 8, Clause 4), which allows Congress to enact "uniform laws on the subject of bankruptcies throughout the United States". The Congress has enacted statutes governing bankruptcy, primarily in the form of the Bankruptcy Code, located at Title 11 of the United States Code. Federal law is amplified by state law in some places where Federal law fails to speak or expressly defers to state law.

While bankruptcy cases are always filed in United States Bankruptcy Court (an adjunct to the U.S. District Courts), bankruptcy cases, particularly with respect to the validity of claims and exemptions, are often dependent upon State law. State law therefore plays a major role in many bankruptcy cases, and it is often not possible to generalise bankruptcy law across state lines.

Generally, a debtor declares bankruptcy to obtain relief from debt, and this is accomplished either through a discharge of the debt or through a restructuring of the debt. Generally, when a debtor files a voluntary petition, his or her bankruptcy case commences.

Answer: If you named the credit card creditor in your bankruptcy and you get a discharge, the debt you owed will be foregiven.


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