Chapter 7 Bankruptcy will discharge debts that are not excluded pursuant to the Bankruptcy Code. A Bankruptcy discharge enjoins creditors from ever collecting on the discharged debt. Creditors are also prohibited from taking any and all collection action from the date of filing, even prior to discharge entering.
The following is a list of common debts that are discharged in Chapter 7:
- credit cards
- medical bills
- Past due utility bills
- Property leases, however you will have to vacate if you do not make rental payments
- Most accident / injury claims
- Personal loans
- Income taxes for tax years that are more than 3 years old (Other timing requirements apply)
- Business debts
- Most civil court judgments
- Mortgage notes and car loans / leases (However the collateral is not discharged so you will have to eventually return the property of you do not keep the loan / lease current)
The following is a list of some debts that are not discharged in Chapter 7:
- Alimony and child support
- Income taxes that do not qualify for discharged as noted above and most other taxes
- Most student loans
- Debts for personal or property injuries that resulted from the willful and malicious acts of the debtor
- Debts for most fines, penalties, forfeitures, or criminal restitution obligations
- Debts for death or injury caused by the debtor’s operation of a motor vehicle while intoxicated from alcohol or drugs
- Debts incurred by fraud or false pretenses
If you are concerned about your financial situation, sit down with a Bankruptcy Lawyer to discuss your options. A good lawyer will review all options, including not filing bankruptcy.
Serving Danbury, Connecticut and all of Fairfield and New Haven Counties.
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