Chapter 7 Bankruptcy - Which Debts Can I Include?
Last Updated: March 8, 2011
Dischargeable Debts
The main focus of bankruptcy relief is discharge from your debts. Discharge means that your personal liability for a debt ends, and creditors can't make any further collection efforts. However, not all debts are eligible for discharge, or are "dischargeable." You take control of your bankruptcy and financial fresh start when you know what the scope of discharge is and what it means in your case. In a Chapter 7 Bankruptcy case, the following types of debts are dischargeable:
- Business Debt
- Judgments
- Credit Card Debt
- Mortgages (but you will lose your home)
- Auto Loans or Leases (but you will lose your car)
- Apartment/Home Leases
- Collections
- Medical Debt
Non-Dischargeable Debts
Certain types of debts cannot be discharged in a bankruptcy. These debts are called non-dischargeable and apply in every case. However, certain debts that are normally dischargeable may be ruled as non-dischargeable if a debtor has committed a crime or fraud.
| Non-dischargeable debts in a bankruptcy: | Circumstances in Which Normally Dischargeable Debts May Become Non-dischargeable. |
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