What is a dischargeable debt?

A dischargeable debt is a debt that can be eliminated through a Chapter 7 bankruptcy in Washington. This type of debt is typically for unsecured creditors, such as credit card companies, medical bills, and payday loans. Once the debt is discharged, the debtor no longer has to pay it, and the creditor can no longer take any action to collect the debt. A dischargeable debt does not include certain debts, such as those for child support and alimony, certain taxes, and most student loans. It also does not apply to secured creditors, such as mortgage lenders and car loan lenders. In these cases, if the debtor does not make payments, the creditor can take legal action to collect the debt. The process for filing for a Chapter 7 bankruptcy in Washington is similar to other states. The debtor must meet certain criteria, including not having too much disposable income or assets, and then file a petition with the court. Once the petition is approved, the court will rule on whether the debt is dischargeable. If the court finds that it is dischargeable, the debt will be eliminated and the debtor will not be legally obligated to pay it.

Related FAQs

What is a dischargeable debt?

Related FAQs

Related Blog Posts