Are All of My Debts Dischargeable Under Chapter 7?

Those who seek the protection of Chapter 7 bankruptcy often make the mistake of assuming that all of their debts will be discharged and disappear. While some debts will be wiped away, there are many debts which cannot be discharged. Debtors who hope to improve their financial situation would do well to understand which debts they will be stuck with, even after a successful bankruptcy filing.

Which debts are wiped out?

Most people who file for Chapter 7 bankruptcy protection will have all or most of their debt discharged. The most common type of debt that people struggle with is credit card debt. However, there are other debts which are generally considered dischargeable, including:

  • Personal loans
  • Collection agency debts
  • Medical bills
  • Utility bills (gas and electricity)
  • Attorney fees (unless they deal with alimony or child support)
  • Civil court judgments
  • Auto accident claims (if drinking and driving was not involved)
  • Business debts

Which debts are not wiped out?

Generally speaking, if your debts were incurred because of a crime you committed or because of a family law judgment, such as alimony or child support, you are stuck with them. Also, debts which involve fraudulent activity are also not dischargeable.

Here are a few examples of debt which will remain after your bankruptcy filing:

  • Most student loans
  • Recent federal, state and local taxes
  • Child support or alimony
  • Government fines
  • Court fees

It’s best to speak to a knowledgeable bankruptcy attorney before proceeding with any bankruptcy filing. An experienced attorney will advise you on which debts may be discharged and help you identify potential properties which can be declared exempt from your bankruptcy estate.

Contact the Law Office of Joel R. Spivack today for a risk-free consultation to discuss your financial situation and your options. For more than 20 years, Joel R. Spivack, Esq. has helped countless people, like you, get back on the road to financial health through bankruptcy protection.

We are here to help you.

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Attorney Joel R. Spivack is an experienced bankruptcy and residential real estate transactions lawyer in Cherry Hill, New Jersey. Clients come to us for legal services, but what we really provide is peace of mind. For more than 30 years, Attorney Spivack has helped people make wise, informed decisions about bankruptcy filings, debt relief options and residential real estate transactions.
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