What happens to any debts that are not discharged in Chapter 7 Bankruptcy?

Debts that are not discharged in Chapter 7 Bankruptcy remain due and owing. This means that the debtor will still be responsible for paying these debts in full. In California, the most common types of debts that are not discharged in Chapter 7 Bankruptcy include taxes, child support, alimony, and student loans. Other debts such as secured debts, certain debts for luxury goods or services, and debts arising from intentional or malicious acts could also remain due and owing even after a Chapter 7 Bankruptcy filing. It is important to note that while these debts still need to be satisfied, they are no longer able to be pursued by creditors. This means that while they still need to be paid, they can no longer be pursued by creditors, such as collection agencies. It also means that creditors are not able to garnish wages or take other actions to collect the debt. In some cases, it may be possible to negotiate a repayment plan with the creditor in order to pay off the debt over time. This could be a more cost-effective option than paying the entire balance at once. It is also possible to make a one-time lump sum payment to pay off the debt in full. No matter what, the debts that are not discharged in Chapter 7 Bankruptcy will still need to be paid, and it is important to understand how to manage this debt in order to avoid any further financial difficulty.

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What happens to any debts that are not discharged in Chapter 7 Bankruptcy?

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