Debts You Cannot Discharge During Bankruptcy

Chapter 7 bankruptcy is one of the most common forms of bankruptcy in the United States, because it can be applied to both individuals and to businesses. Many people choose Chapter 7 bankruptcy as their form of bankruptcy because it involves asset liquidation, which means selling your assets to pay off ones debts. Another aspect of Chapter 7 bankruptcy that makes it appealing for many is that oftentimes, when a person files for bankruptcy, his or her debts can be discharged, meaning that debtors will no longer be responsible for paying them back. While this is an attractive feature of Chapter 7 bankruptcy, its important to understand that not every debt is dischargeable.

Understanding the difference between debts that are dischargeable and debts that are not dischargeable is extremely important if a person is thinking of filing for bankruptcy, and is counting on debt discharge. While many debts are dischargeable, such as home mortgage loans and vehicle payments, some are not dischargeable, including:

  • * Student Loans
  • * Unpaid Taxes
  • * Tax Liens
  • * Debts owed to the U.S. Government
  • * Child Support Payments
  • * Alimony Payments
  • * Debts from Willful or Malicious Injury
  • * Debts from Intoxication Lawsuits

These debts are not dischargeable through Chapter 7 bankruptcy, so a debtor who files for Chapter 7 will still be financially responsible for these debts. The best way to know which debts will be discharged and which may not is to discuss your particular legal and financial circumstances with a legal representative as soon as you decide to file for Chapter 7 bankruptcy.

Chapter 7 bankruptcy comes with many benefits for debtors, which is why its one of the most popular forms of bankruptcy. If you are thinking of filing for Chapter 7 bankruptcy and want to know more about debt discharge, contact an experienced attorney today to discuss your situation.

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