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What debts can be discharged with Chapter 7 bankruptcy?

If you are considering filing for Chapter 7 bankruptcy due to your debt, it’s important to know the type of debts that can be discharged in this form of bankruptcy. Chapter 7 bankruptcy is best for individuals who are looking to have most of their debt discharged, so they can begin anew in their financial life.

Debt that can be discharged in a bankruptcy filing is debt that will be wiped from your record once the bankruptcy filing is complete. This means that you will not be responsible for these debts once the filing is finalized. A list of dischargeable debts using Chapter 7 includes the following:

  • Medical bills
  • Credit card bills
  • Past-due utility bills
  • Accounts with collection agencies
  • Student loans (if you are able to show undue hardship)
  • Past-due rent
  • Business debts
  • Personal loans
  • Civil court judgments
  • Social Security overpayments
  • Taxes left unpaid past a certain number of years
  • Claims stemming from car accidents (if not due to drunk driving)
  • Veterans assistance loans
  • Credit accounts with revolving charges
  • Fees for an attorney (except for awards of alimony and child support)

All of the debt listed above must meet certain requirements in order for it to be discharged when you file for Chapter 7 bankruptcy. Debt can only be discharged if you have accrued it prior to filing your bankruptcy petition. Any debt accrued after the petition has been filed remains your responsibility for repayment.

Now that you know the debt that can be discharged when filing for Chapter 7 bankruptcy, you can make an informed decision. It is best to consult a bankruptcy attorney before beginning the filing process, so you know what to expect.