Is there a way to avoid repaying certain creditors when filing for Chapter 7 Bankruptcy?

Yes, it is possible to avoid repaying certain creditors when filing for Chapter 7 Bankruptcy in South Dakota. This procedure is known as a “discharge” and it releases a debtor from the legal responsibility to repay the debt. Once this is discharged, the creditor loses the right to pursue the debt from the debtor. The types of debts that may be discharged when filing for Chapter 7 Bankruptcy in South Dakota include: medical bills, unsecured credit card debt, personal loans, and unsecured lines of credit. Additionally, certain income taxes, certain court-ordered fines, and certain debts arising from divorce settlements may be discharged. Debts that are not eligible for discharge include: student loans, government-related debts such as taxes, debts resulting from fraud or embezzlement, child support or alimony payments, and certain court-ordered fines. In order for a debt to be discharged, the debtor must file a petition with the court in South Dakota and demonstrate that they meet the eligibility requirements for bankruptcy. The bankruptcy court will then review the petition and determine whether or not the debt can be discharged. If the court decides that the debt can be discharged, the debtor will no longer be responsible for repaying the debt. However, if the court rules that the debt cannot be discharged, the debtor must continue to make payments on the debt.

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Is there a way to avoid repaying certain creditors when filing for Chapter 7 Bankruptcy?

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