What types of debt can be discharged through bankruptcy?

When it comes to discharging debt through bankruptcy in North Carolina, there are several types of debt that may be eligible for discharge. Generally, debt that is considered “unsecured” debt, such as medical bills, credit cards, payday loans, and personal loans, can be discharged. Unsecured debt is debt that is not backed by collateral, such as your home or car. Taxes, student loans, child support payments, and alimony obligations may also be discharged in certain cases. However, these kinds of debt are typically not dischargeable in North Carolina and must be repaid in full. Debt that is considered “secured” may also be discharged through bankruptcy in North Carolina. Secured debt is any debt that is backed by collateral, such as a car loan or home mortgage. Secured debt is more likely to be discharged if the collateral is deemed to be of no value or if the debtor has been making regular payments. In addition, debt that is associated with a business that is no longer in operation may be dischargeable under certain circumstances. This includes any debts incurred from the sale or use of the business’s assets. One type of debt that is usually not dischargeable in North Carolina is court imposed fines, such as for a parking ticket or speeding ticket. These kinds of fines must be repaid in full and cannot be discharged. In summary, when it comes to discharging debt through bankruptcy in North Carolina, there are several types of debt that may be eligible for discharge. Unsecured debt, secured debt, business debts, and certain taxes may potentially be discharged. However, court imposed fines cannot be discharged and must be repaid in full.

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What types of debt can be discharged through bankruptcy?

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