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What Debts Are Dischargeable?

One of the biggest benefits of bankruptcy is the fact that your debts can be permanently wiped out through a successful filing. Many people give bankruptcy a bad reputation as a last resort method that doesn’t merit much positive change, but many more are simply unaware of the long-term benefits. Below you’ll find a guide to the debts that you may be struggling with that bankruptcy can help relieve.

Discharge Under Chapter 7

A discharge releases a debtor from the responsibility of paying a debt and prevents any creditor from taking any action to collect a debt they are owed. In its simplest form, a debtor is no longer legally required to pay any debts that have been discharged by the bankruptcy.

In most cases, debtors will automatically receive a discharge at the end of their Chapter 7 filing. Discharges under this Chapter are usually granted by the court 60 days after the Meeting of Creditors, usually four months after filing a bankruptcy petition.

That being said, here is a list of debts that can be discharged under Chapter 7 bankruptcy:

  • Credit card debt
  • Medical bills
  • Personal loans
  • Promissory notes
  • Lawsuit judgments against you
  • Obligations under leases and contracts

Discharge Under Chapter 13

Once the bankruptcy process is completed, debtors can be issued a discharge or partial discharge through Chapter 13, but there are some instances where a debtor may need to convert their case to a Chapter 7 to gain the proper relief.

There are debts, however, that can only be discharged under Chapter 13 that are unavailable to Chapter 7 filers. Here they are:

  • Marital debts from divorce (excluding child support and alimony)
  • Court fees
  • Condo, coop, and HOA fees
  • Debts from retirement plan loans
  • Debts that were not able to be discharged through a previous bankruptcy

Contact Our Los Angeles Bankruptcy Team Today

We understand the confusion that many people feel when it comes to bankruptcy. We are committed to showing people the true benefits of bankruptcy through a compassionate and personalized approach.

If you have questions about whether your debts can be forgiven through bankruptcy, contact us today through our website, or give us a call at (818) 805-1758!

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