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

In Chapter 7 Bankruptcy, also known as “liquidation bankruptcy,” many of your unsecured debts can be discharged. Unsecured debts are those that are not attached to property, such as medical bills, credit cards, payday loans, unresolved utility bills, and certain types of taxes. Many of the debts listed above may be discharged in Chapter 7 Bankruptcy, however, not all debts can be. For example, student loans, child support payments, certain taxes, and any court judgments against you are not eligible for discharge. In addition, if you file for Chapter 7 Bankruptcy, any outstanding mortgages or auto loans are still owed, even if they are discharged in the bankruptcy. Despite the fact that you may no longer be liable for these debts, the lien holder still retains a right to your property and can collect through foreclosure or repossession. Finally, certain items such as alimony, personal injury obligations, or debts from fraud or embezzlement are not eligible for discharge. There are also limits on the amount of property that can be protected from creditors. It’s important to note that the laws surrounding Chapter 7 Bankruptcy in North Carolina may vary, so it’s wise to contact a licensed attorney to ensure that all Chapter 7 bankruptcy requirements are met.

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

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