What types of debt can be discharged through bankruptcy?

In South Carolina, bankruptcy law offers debtors the opportunity to discharge certain types of debt if certain conditions are met. Generally, most unsecured debt—such as credit cards, medical bills, and personal loans—can be discharged through bankruptcy. In addition, a debtor may be able to discharge mortgage debt, depending on the circumstances. If a debtor does not want to keep the home, they may be able to discharge the mortgage debt. In some cases, student loan debt can be discharged, although this is often difficult to do. Certain types of tax debt can be discharged through bankruptcy as well, such as debts created by an erroneous tax return, taxes that are more than 3 years old, or taxes assessed while a taxpayer was in bankruptcy. Other kinds of debt can potentially be discharged such as debts arising from personal injury lawsuits or family support obligations. However, certain types of debt cannot be discharged. These include most taxes, debts stemming from fraud, certain student loans, and domestic support obligations, such as alimony and child support. In addition, it is important to note that discharging debt through bankruptcy does have consequences, such as an adverse impact on a person’s credit score, and should only be considered if absolutely necessary.

Related FAQs

Are there any assets that I will be required to sell when filing for bankruptcy?
What is the difference between secured and unsecured creditors?
What are the differences between filing for Chapter 7 and Chapter 13 bankruptcy?
Are there any assets that I will not be able to keep in bankruptcy?
Can I file for bankruptcy if I'm unemployed?
How much does it cost to file for bankruptcy?
Is there anything I can do to rebuild my credit after bankruptcy?
Which debts cannot be discharged in bankruptcy?
What is the difference between a Chapter 11 and a Chapter 13 bankruptcy?
How often can I file for bankruptcy?

What types of debt can be discharged through bankruptcy?

Related FAQs

Related Blog Posts