Are unsecured debts discharged in Chapter 7 Bankruptcy?

In Virginia, unsecured debts are usually discharged in a Chapter 7 Bankruptcy. This means that creditors must forgive a debtor’s obligation to repay the debt. Certain exceptions apply, such as taxes, student loans, and alimony, but most unsecured debts will no longer be owed by the debtor. When filing for Chapter 7 Bankruptcy, the debtor will list all of their debts and assets. The court will evaluate this information to determine the amount of debt that must be discharged. The court may also require the debtor to liquidate some of their assets in order to pay down some of their debts. When unsecured debts are discharged in Chapter 7 Bankruptcy, the debtor is no longer legally responsible for repaying any remaining balance. Creditors are not allowed to seek repayment of discharged debt, though the debt will remain on a debtor’s credit report for seven to ten years. Bankruptcy is a serious decision and should not be taken lightly. If you are experiencing financial hardship and think that you may need to file for Chapter 7 Bankruptcy, it is important to seek professional legal advice to determine if this is the best option for your situation.

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Are unsecured debts discharged in Chapter 7 Bankruptcy?

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