What types of debts can be discharged through Chapter 7 Bankruptcy?

In South Dakota, Chapter 7 bankruptcy is a type of debt relief that can help individuals reduce or eliminate certain types of unpaid debts. Through Chapter 7, certain debts can be discharged, meaning that the debtor is no longer required to pay them. Common types of debts that can be discharged through Chapter 7 bankruptcy include credit card debt, medical bills, personal loans, payday loans, utility bills, and certain types of taxes. Other unpaid debts that can be discharged include judgments obtained by debt collectors, late rent payments, and overdraft fees. When filing for bankruptcy, some of the debts that cannot be discharged include student loan debt, government-issued fines, alimony and child support payments, certain taxes, and certain debts arising from personal injury or death caused by the debtor. In order to qualify for Chapter 7 bankruptcy in South Dakota, the debtor must pass a means test, which compares their income to the median income for their state. If their income is lower than the median, the debtor will automatically qualify. Those with higher incomes may still qualify, but will have to provide additional proof of their financial situation. If a debtor qualifies, then they can proceed with filing for Chapter 7 bankruptcy and could potentially be discharged from many of their debts. It is important to remember, however, that not all debts can be discharged through bankruptcy and that there may be other long-term consequences, such as a lowered credit score. It is recommended that individuals considering bankruptcy speak with an attorney to determine the best course of action for them.

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What types of debts can be discharged through Chapter 7 Bankruptcy?

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