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

Any debts that are not discharged in Chapter 7 Bankruptcy in Idaho are known as “non-dischargeable debts.” These debts are still owed even after the bankruptcy is finalized and the debtor is discharged of any remaining debt. This could include debts like alimony, child support payments, student loans, debts associated with certain criminal activities, and some tax liabilities. In any case, creditors can still ask the court to rule that the debt does not have to be paid back, but the court may deny this request. When a debt is ruled as non-dischargeable, the debtor will still be responsible for paying it back. Creditors have the right to take legal action for recovery of the debt if the debtor fails to pay. Also, any negative marks the debt left on the debtor’s credit report will remain after the bankruptcy is complete. The debtor is allowed to negotiate with the creditors and offer to pay a portion of the debt, which is known as a repayment plan. This could help the debtor reduce the amount they owe and help them pay the debt back over time. It is important to note that any repayment plan must be approved by the court in order for it to be valid. Although a Chapter 7 Bankruptcy can help several debtors in Idaho find relief from their debt, any non-dischargeable debts still remain even after the process is complete. The debtor must understand their responsibilities and take the necessary steps to repay any non-dischargeable debts.

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