What is a dischargeable debt?

A dischargeable debt is any debt that is legally dismissed in bankruptcy proceedings. Chapter 7 Bankruptcy Law in North Carolina and the rest of the United States allows for certain types of debts to be discharged. This means that the individual filing for bankruptcy does not have to pay back this debt once it is approved by the courts. The types of debts that can be discharged in Chapter 7 Bankruptcy Law in North Carolina include credit card debts, medical bills, unsecured personal loans, and certain types of taxes. In addition, some court-approved settlements for debts, such as student loans, can be discharged as well. In order for a debt to be dischargeable, it must meet certain criteria set by the Bankruptcy Code and the individual must not have committed fraud or broken any other laws related to the debt. In addition, some debts are not dischargeable in Chapter 7 Bankruptcy. These include child support and alimony payments, most student loans, and some taxes. Furthermore, some debts are only partially dischargeable, such as secured loans, which may require that the individual filing for bankruptcy still make payments on the loan. Overall, a dischargeable debt is any debt that can legally be dismissed in bankruptcy proceedings. In order to determine which debts are eligible for discharge in Chapter 7 Bankruptcy Law in North Carolina, an individual should consult an attorney or other financial professional for advice.

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What is a dischargeable debt?

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