What is a dischargeable debt?

A dischargeable debt is a type of debt that can be erased by filing for bankruptcy under Chapter 7 of the California Bankruptcy Law. A dischargeable debt is typically one that is not secured by collateral, such as a loan, credit card debt, or medical bills. When a debtor files for Chapter 7 bankruptcy protection, they are asking the court to dismiss all of their non-secured debt. This means that all of their dischargeable debt will be erased, and they will no longer be responsible for paying it back. Once a dischargeable debt has been erased, the debtor no longer owes any of it to the creditors who issued the debt. The creditors cannot take any legal action to try and collect on the debt. The debtor also does not need to include the debt in their income on their taxes. The types of debts that are not eligible for discharge in a Chapter 7 bankruptcy include alimony, child support, student loan debt, and certain taxes. In addition, if the creditor can prove that the debt was incurred due to fraud or malicious intent, this type of debt may also not be eligible for discharge. In summary, a dischargeable debt is a debt that can be erased through filing for Chapter 7 bankruptcy protection under California Law. Knowing which debts are and are not eligible for discharge is key for an individual who is considering filing for bankruptcy and in order to ensure that their debt situation is managed properly.

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