What types of debts can be discharged in a Chapter 7 Bankruptcy proceeding?
I’ve personally been involved in over a thousand bankruptcy cases with different law firms. There are general rules and there are some exceptions. So the particulars of your case may vary depending on the facts of your case. With that said, the types of debts that can be discharged in a Chapter 7 Bankruptcy proceeding are generally limited to those that are unsecured, meaning they do not have any collateral attached to them. Examples of unsecured debts include credit cards, medical bills, personal loans, and department store cards. These types of debts are often referred to as “dischargeable debts” because they can be discharged in a Chapter 7 Bankruptcy proceeding.
In addition, some taxes may also be discharged in a Chapter 7 Bankruptcy, though there are certain criteria that must be met. For instance, taxes that are more than three years old may be discharged if the taxpayer did not commit fraud or willful evasion of taxes. In addition, student loans may be discharged in a Chapter 7 Bankruptcy, though this is rare and requires a showing of undue hardship on the part of the borrower.
Finally, certain types of debts cannot be discharged in a Chapter 7 Bankruptcy. These include alimony and child support payments, certain types of taxes, and certain types of student loans. Other debts such as judgments, criminal fines, and most loans secured by collateral cannot be discharged in a Chapter 7 Bankruptcy.
TLDR: a Chapter 7 Bankruptcy proceeding allows individuals or businesses to discharge certain types of unsecured debts, such as credit cards, medical bills, and personal loans. In addition, taxes and student loans may be eligible for discharge in certain cases. However, certain types of debts, such as alimony, child support, and most loans secured by collateral, are generally not dischargeable in a Chapter 7 Bankruptcy proceeding.
When you need a bankruptcy lawyer in Utah, try this one:
Ascent Law LLC
8833 S Redwood Rd Ste C
West Jordan UT 84088
(801) 676–5506
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