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

In Virginia, Chapter 7 bankruptcy is available as one of the most common forms of bankruptcy. It is generally used when individuals have too much debt to be able to pay off, but have limited income. It allows people to have their debts discharged and start fresh with a clean slate. One of the main types of debt that can be discharged through Chapter 7 bankruptcy is unsecured debt, such as credit cards, medical bills, and personal loans. This means that these debts can be written off, and the debtor will no longer owe on them. It does not mean that the debt is forgiven, however; the debtor still has to pay for the balance of what is owed. In addition to unsecured debt, some types of secured debt can also be discharged through Chapter 7. These include mortgages, auto loans, and student loans, as long as the debtor is no longer responsible for the debt. This means that the debtor can no longer be sued for the balance of the debt and they no longer have to make payments. Finally, some types of taxes can also be discharged through Chapter 7. This includes income taxes that are older than three years old, as well as any unpaid property taxes. Taxes that are associated with fraudulent activities cannot be discharged, however. Overall, through Chapter 7 bankruptcy, many types of debts can be discharged in Virginia, allowing debtors to get a fresh start. These debts include unsecured debts, some secured debts, and certain types of taxes.

Related FAQs

Will the trustee liquidate all of my belongings in Chapter 7 Bankruptcy?
How does filing for Chapter 7 Bankruptcy affect joint debts?
How can I rebuild my credit after filing for Chapter 7 Bankruptcy?
How soon can I file for Chapter 7 Bankruptcy again after a previous filing?
How much will my attorney fees be for filing for Chapter 7 Bankruptcy?
What are the different types of bankruptcy?
What is a nondischargeable debt?
What happens to my creditors when filing for Chapter 7 Bankruptcy?
Are there other options than filing for Chapter 7 Bankruptcy?
How long does the bankruptcy stay on my credit report?

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

Related FAQs

Related Blog Posts