What types of debts can be discharged in a Chapter 7 Bankruptcy proceeding?
What types of debts can be discharged in a Chapter 7 Bankruptcy proceeding? Tim Cella used to work at several law firms 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 ...