What types of debt can be discharged through bankruptcy?

In Delaware, bankruptcy law allows certain types of debt to be discharged through bankruptcy, meaning the debtor no longer has to make payments on the debt. Generally, debts that can be discharged include credit card debt, medical bills, certain types of taxes, and certain personal loans. Debt that cannot generally be discharged include student loan debt, alimony, and child support. There are two types of bankruptcy that can be filed in Delaware: Chapter 7 and Chapter 13. In Chapter 7, a court-appointed bankruptcy trustee will sell any nonexempt assets to pay creditors. In Chapter 13, the debtor agrees to a repayment plan with the court to pay their debt back over a period of time. In Delaware, debtors must take a credit counseling course before filing for bankruptcy and must be a resident of the state for at least 180 days before filing. In addition, debtors must be able to prove that they don’t have enough income to pay off their debts, which is done by completing a means test. Filing for bankruptcy can be a difficult decision and can have a major impact on a person’s credit score. However, in Delaware, it can be a way to get a fresh financial start and get rid of certain types of debt. Before filing for bankruptcy, it’s important to understand the laws and regulations in Delaware and how they will affect you.

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What types of debt can be discharged through bankruptcy?

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