What types of debts can be discharged in Chapter 7 Bankruptcy?

In California, debts that can be discharged in Chapter 7 Bankruptcy are typically ones that are unsecured. This includes credit card debt, medical bills, personal loans, civil judgments, collection accounts, and repossessions of property. It is important to note that certain types of debts are generally not dischargeable in a Chapter 7 Bankruptcy, such as student loans, alimony, child support, some taxes, and certain types of back taxes. In addition, some debts may be partially discharged in a Chapter 7 Bankruptcy. Generally, creditors are not allowed to collect any amount of a debt that is discharged in a Chapter 7 Bankruptcy. However, in certain cases, a creditor may be able to collect a partial amount of the debt from an individual if the creditor can show that the debtor has enough assets or income to pay a portion of the debt. Finally, some debts may be discharged in a Chapter 7 Bankruptcy if the debtor successfully participates in a Debt Management Program. This type of program is offered by credit counseling services and other organizations and typically helps debtors develop a repayment plan to repay certain debts. If the debtor successfully completes the program, the applicable debts may be discharged in a Chapter 7 Bankruptcy.

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