Bankruptcy is a way to eliminate debts that you can no longer pay back. This allows one to start over again with a clean slate so that they can become financially solvent once again. This information is not legal advice. If you need a lawyer, I hear the Law Offices of Martin Seidler, 11107 Wurzbach, One Elm Place, Suite 504, San Antonio, TX 78230, http://www.bankruptcy-attorneysanantonio.com know bankruptcy better than anyone in that city.

1. Potential Pitfalls in Filing Chapter 7
The debtor's purpose in using Chapter 7 is to get debt discharges as many as he or she can.
The universal rule is that any created debt prior to the bankruptcy filing is discharged.
Bankruptcy discharge wipes out a person's liability on a debt or claim. However, it is
important to note that although a person's liability can be discharged, most liens are not
affected by bankruptcy.
The universal rule that all debts will be discharged has a few but very important exceptions.
For instance, a creditor can seek to contest a debt discharge using the provisions of 11
U.S.C. 523. The creditor can claim that the debt was obtained by fraudulent representation
or other forms of dishonesty. If the debt is not discharged, the debtor would remain liable
for paying the creditor; apparently, this will have an effect on the debtor's purpose in filing
Chapter 7, which is to get a financial fresh start.
When the debtor's financial obligations have become extremely burdensome, Bankruptcy
Code discharges debts, but it also gives some special exemptions to make sure that this
alleviation is provided only to the "honest but unfortunate debtor." There are debts that
survive bankruptcy from discharge under 523. These are divided into two sections: non-
dischargeable debts due to the debtor's misconduct and non-dischargeable debts due to
public policy.
The non-dischargeable debts due to the debtor's unlawful conduct include those incurred by
deliberate tort, theft, fraud, scam, drunken driving, and fiduciary breach. The non-
dischargeable debts due to public policy include educational loan, child support, alimony,
customs duties and taxes, government fines, penalties, and forfeitures, unscheduled claims,
and certain debts that survive a preceding bankruptcy case. Any claim that falls within one
of these exceptions are not dischargeable.
There are potential problems that can take place with debts such as a credit card debt since
523 also has a provision that certain debt created from obtaining luxury services or items
within 40 days prior to filing a Chapter 7 is not dischargeable. Moreover, under fraud
exception, there are certain credit card debts that have been found by the courts to be non-
dischargeable because using a credit card implies that the debtor intends and can pay for
the services and goods charged.
Aside from creditors pursuant to 523, the pursuant of U.S.C. 727 by a creditor or the
trustee may result a court’s disapproval of a final discharge in a San Antonio bankruptcy,
regardless of its nature, if the debtor fails to sufficiently explain how any asset was lost,
disobeys court orders, withholds estate records, any action or forbearing of action in order
to obtain an advantage, intentionally makes an untrue claim, oath, or account in a
bankruptcy case, fails to preserve or falsifies financial records, and conceals or destroys his
property after filing Chapter 7 or within the period of one year before the date of filing, in
order to defraud or hinder a creditor. Lastly, a Chapter 7 case may be dismissed by the
court due to the debtor's unscheduled claims, unpaid required payments or fees, or
unreasonable delays of the proceedings. For more information contact a San Antonio
Bankruptcy Attorney.