Are unsecured debts discharged in Chapter 7 Bankruptcy?

Yes, unsecured debts are discharged in Chapter 7 Bankruptcy in New Hampshire. The discharge of unsecured debts means that the creditor cannot take any action to collect on the debt, including filing a lawsuit. This means that if someone files for Chapter 7 Bankruptcy, all of his or her unsecured debts will be forgiven. An unsecured debt is one that does not have a physical asset attached to it, such as a car loan or mortgage. These types of debts usually include credit card debt, medical bills, and some personal loans. In order for the debt to be discharged, the individual must prove that he or she cannot pay the debt back. Once the bankruptcy filing is complete, the court will issue a discharge of the unsecured debt, which will result in the creditor no longer having any legal right to collect on the debt. In New Hampshire, an individual who files for Chapter 7 Bankruptcy can also have some of his or her secured debts discharged. These will typically include any outstanding balances on cars and mortgages. The individual must still make payments on these debts in order for them to be discharged in the bankruptcy filing, and any remaining balances that cannot be paid off in full will be discharged by the court. Overall, filing for Chapter 7 Bankruptcy in New Hampshire can be a great way to eliminate unsecured debt and get a fresh financial start. The court will look at each individual’s financial situation and decide whether or not the unsecured debt can be discharged. With the help of a lawyer, it is possible to get out from under a large amount of debt and move forward with financial stability.

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