One component of bankruptcy that many people get confused about is what can and cannot be discharged from their debts. The common misconception is that all debt is discharged and this is simply not the case. The types of debt that can be discharged have a lot to do with the type of bankruptcy. Chapter 7 bankruptcy is the type of bankruptcy that has to do with discharging debts instead of simply paying them down. Before you file Chapter 7 Atlanta, you need to know if your debts are able to be removed from your record.

What Exactly Is a Discharge?

The first thing you need to understand is what a discharge is. During Chapter 7 bankruptcy, when a debt is discharged, the personal liability for the debtor is removed. Because of this, the creditor can no longer make any collection actions against the debtor. This means that the debt is removed from the debtor and it is no longer owed. For many Chapter 7 cases, the filers will get the discharge on all applicable debts at the end of their bankruptcy case.

What Debts Can Be Discharged?debt on a man's shoulders

There are many different kinds of debts that can be discharged during this type of bankruptcy. There are 19 different categories of debts that cannot be discharged according to the Bankruptcy Code. Anything that does not fall into those categories can be discharged. However, you should keep in mind that any debts, even if they are dischargeable by definition, are not able to be removed if there is any fraud or misconduct in connection with them. Additionally, any debts that were incurred before your date of filing for the bankruptcy will be included in this consideration. Those debts that you inquired after the fact are not included in your bankruptcy case and you will still be responsible for paying those debts.

Common Categories of Debt that can be Discharged:

  • Credit card debt, even your late fees and overdue fees
  • Accounts in collection
  • Medical debts
  • Personal loans given by employers, family, or friends
  • Past due amounts on your utility bills
  • Past due rent or other money owed for a lease agreement

If you have debts that fall within these categories, you can definitely get them discharged during a Chapter 7 bankruptcy. If you have debts that do not fall within these categories, you may still be able to but we encourage you to speak with your Atlanta Chapter 7 bankruptcy attorney to determine your eligibility before filing. Contact us today to find out more.