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

Debts that are not discharged in Chapter 7 Bankruptcy are still legally required to be paid. The bankruptcy process does not eliminate every type of debt, and certain debts are not eligible for relief through bankruptcy. Debts such as certain taxes, alimony or child support payments, student loans, and debts resulting from court judgments cannot be discharged in Chapter 7 Bankruptcy. South Dakota law states that any debts that are not discharged in Chapter 7 remain the responsibility of the debtor. After a Chapter 7 Bankruptcy is finalized, the creditor can continue to contact the debtor or take legal action to collect payment. This means that the creditor can file a lawsuit or garnish the debtor’s wages or bank accounts if the debt remains unpaid. Some creditors may be willing to negotiate a payment plan or reduce the amount owed by the debtor; it is up to the debtor to contact the creditor and try to work out a payment plan. Other creditors may be open to accepting a settlement, meaning that the creditor agrees to accept a certain amount of money in full payment of the debt. It is important for debtors to understand that even if their debts are not discharged in Chapter 7 Bankruptcy, they are still required to pay them back. Understanding the terms of the bankruptcy process and working out payment plans or settlements with creditors can help debtors take control of their financial obligations and move forward with their lives.

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

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