Many people ask if filing bankruptcy will discharge future debt incurred after their bankruptcy petition is filed. The answer is NO. A bankruptcy discharges debt that was incurred PRIOR to the date the petition is filed, not any new debt incurred after filing.
If you file a bankruptcy petition on April 1, 2013, all dischargable debt you incurred prior to April 1, 2013 will be discharged in the bankruptcy. It doesn’t matter how old the debt is, it will be discharged. However, if you acquire new debt after filing the petition on April 2, 2013, that new debt WILL NOT be discharged in your bankruptcy.
As an example, let’s say Henry files a Chapter 7 bankruptcy on April 1, 2013 but has to undergo emergency surgery April 2, 2013. The new debt from the medical emergency will not be discharged and Henry will need to wait 8 years to before he can file another Chapter 7 bankruptcy to discharge that medical debt. Until then, if Henry fails to pay the medical bill, he can be sued, judgments entered against him, his wages garnished and his state tax refunds intercepted.
If you are considering filing bankruptcy it is important to understand this reality. Call Church and Korhonen, PC for a free bankruptcy consultation today if you live in any of the Upper Peninsula locales (800) 758-5611 or local in Marquette, MI (906) 226-0001.