Which Types Of Debt Can You Discharge In A Chapter 7 Bankruptcy?
Finding the money you need to pay rent and bills and buy groceries when you’re suffering under the weight of debt can be overwhelming. A Chapter 7 Bankruptcy could be an option for you if you need debt relief from credit cards, medical bills, car loans, and more. Read on to discover what types of debt you can discharge in a Chapter 7 with the assistance of an experienced debt relief lawyer.
What is a Chapter 7 Discharge?
A discharge is an order from the bankruptcy court declaring that you are no longer responsible for the debts that are included in your Chapter 7 petition. In other words, you do not have any obligation to pay those debts. They are deemed discharged in your bankruptcy case, typically 45 days after your creditors meeting.
Debtors will almost always be granted a discharge following a Chapter 7 petition. There usually has to have been some sort of fraud involved or the debt might be secured to collateral or real estate for creditors to object to a discharge or initiate an adversary proceeding to collect on the debt.
What Debts Are Dischargeable in a Chapter 7?
While the dischargeability of your debts will depend on your particular situation, people can typically discharge most of their unsecured debts. Unsecured debts are simply those that are not backed by collateral. The types of unsecured consumer debts that will most likely be dischargeable in your Chapter 7 bankruptcy include credit card charges, medical bills, back rent, personal loans, car loans, defaulted car leases, and utility bills.
Debts that are not dischargeable include alimony (or spousal support), child support, tax obligations, fines and criminal penalties, and student loans. Your mortgage is considered a secured debt (which is not necessarily dischargeable) because your creditor can attach a lien to your property and then take your house or your car if you fail to make your payments. If you tried to discharge unpaid mortgage payments, your lender still has the right to recover the property, which means you’ll need to give up your home.
Should a creditor attempt to collect a debt that has been discharged by the bankruptcy court, they can be held in contempt of court.
Glen A. Kurtis, P.C. – Your Trustworthy Bankruptcy Guide
Struggling with bankruptcy can be frustrating and hard to overcome alone. Debt elimination lawyer Glen Kurtis has been practicing for over 20 years and is ready to sit down with you and explore your available options for debt relief. He and our legal team at Glen A. Kurtis, P.C., offer you honest communication and straightforward answers so that you can start your new financial future with confidence.
If you’re struggling under a mountain of debt, you deserve trustworthy legal guidance and money management assistance. We will help you find fast protection from creditors and put you back on the path to a financially stable lifestyle.
We proudly serve Long Island, Westchester, and New York City. Contact us for your free, confidential consultation with our debt settlement attorney in White Plains, NY.
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