Clark & Washington

What is covered in Chapter 7? What isn’t?

You may have heard that a Chapter 7 bankruptcy discharges all of your debts. A discharge removes all legal responsibility of the debtor to pay the debt. A creditor may no longer seek repayment on discharged debt. While many debts can be discharged through a completed Chapter 7 bankruptcy, some debts are not eligible to be discharged.

What Debts Can Be Eliminated With a Chapter 7 Bankruptcy?

As long as a debt is not related to fraud, the bankruptcy code allows for most debts to be discharged in bankruptcy. Some of the most common debts include:

What Debts Cannot Be Eliminated with a Chapter 7 Bankruptcy?

The federal code includes 19 types of debt that cannot be discharged through bankruptcy. These debts include;

Will I Be Able to Keep my Home if I File Chapter 7?

If you are considering filing for a Chapter 7 bankruptcy, keeping your home or vehicle may be of concern to you. These are considered secured loans with the actual home or vehicle serving as collateral to ensure the repayment of the loan. If you continue to make timely payments then you can exclude these debts from your bankruptcy filing. If you find that you need to include a secured loan in a Chapter 7 bankruptcy filing you will need to surrender that property to help cover your obligation.

Need help with your Chapter 7 bankruptcy? Our Clark and Washington attorneys can help you navigate the bankruptcy process and ensure that your rights are protected. Contact us today for a free consultation.


Exit mobile version