Chapter 7 bankruptcy cases “discharge” or release a debtor from many - but not all - types of debt.

A discharged debt, as I have explained in other posts on the NY Bankruptcy Blog (check out “Bankruptcy Basics: What Is a Chapter 7 Bankruptcy And How Does It Work?”), is a debt that the debtor does not have to pay, and creditors can no longer attempt to collect. If you have been struggling with debt collection services, you can imagine what a relief a Chapter 7 discharge can be.

What exactly are ‘dischargeable’ debts?

All debts of any type or amount, including out-of-state debts, are dischargeable in a Chapter 7 case EXCEPT for certain types of debts determined by law to be nondischargeable in a Chapter 7 case.

The following 10 types of debt are the MOST COMMON debts that are NOT DISCHARGEABLE in a Chapter 7 case:

1. Most tax debts and debts that were incurred to pay nondischargeable federal tax debts.
2. Debts for obtaining money, property, services, or credit by means of false pretenses, fraud, or a false financial statement, if the creditor files a complaint in the bankruptcy case.
3. Debts not listed on the debtor’s Chapter 7 forms, unless the creditor knew of the bankruptcy case in time to file a claim.
4. Debts for fraud, embezzlement, or larceny, if the creditor files a complaint in the bankruptcy case.
5. Debts for domestic support obligations, which include debts for alimony, maintenance, or support, and certain other divorce-related debts, including property settlement debts.
6. Debts for intentional or malicious injury to the person or property of another, if the creditor files a complaint in the bankruptcy case.
7. Debts for certain fines or penalties.
8. Debts for most educational benefits and student loans, unless a court finds that not discharging the debt would impose an undue hardship on the debtor and his or her dependents.
   
9. Debts for personal injury or death caused by the debtor’s operation of a motor vehicle, vessel or aircraft while intoxicated.
10. Debts that were or could have been listed in a previous bankruptcy case of the debtor in which the debtor did not receive a discharge.

It is important to me to clarify the process of filing a Chapter 7 case for my blog readers. As you can see, however, the regulations are lengthy and complicated!

I am more than willing to explain the finer points of Chapter 7 FAQs. Just contact me for more particulars - I am happy to answer your questions.

Thanks for reading,

Matt
___________________________________
Matt Hughson

New York Bankruptcy Lawyer

Ziff Law Firm, LLP
303 William St., Elmira, NY 14901
Tel: (607) 733-8866
Fax: (607) 732-6062
Toll Free: 1-800-943-3529
Email: mhughson@zifflaw.com
Web: http://www.zifflaw.com

Share on Facebook