What is Discharged in a Chapter 7 Bankruptcy

Chapter 7 bankruptcy is an effective form of personal bankruptcy because in as little as five to six months you can have your qualifying debt eliminated.

Qualifying debt usually includes unsecured debts such as credit cards, medical bills, payday loans, and utility bills. Chapter 7 may not discharge current taxes, some student loans, penalties and fines to government agencies, or debts not listed in your bankruptcy paperwork.

Some debt that will not be discharged include:

∙ Debts with the intention of causing injuries.
∙ Debts incurred by fraud.
∙ Alimony.
∙ Child support.

Credit card companies may make accusations of fraud. The purpose is to scare honest consumers to agree to pay the debt. If the creditor takes you to court and loses, the judge may order the creditor to pay your lawyer fees.

If you have a large amount of credit card and other unsecured debt, you may want to talk to an Elk Grove bankruptcy attorney to find out how you can have that debt legally eliminated.

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