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

In Washington, Chapter 7 bankruptcy is a way for individuals to eliminate certain types of debts. This type of bankruptcy is also referred to as ‘liquidation bankruptcy’ because, as part of the process, some of the debtor’s property may be sold to pay outstanding debts. After all debts have been addressed, the rest of the debtor’s obligations are discharged, meaning they are no longer responsible for the debt. In Washington, Chapter 7 bankruptcy can be used to discharge most unsecured debts. Unsecured debts can include credit card debt, medical bills, payday loans, personal loans, and utility bills. Chapter 7 bankruptcy can also be used to discharge some types of secured debts, such as car loans and home equity loans, if the debtor’s property is surrendered. In most cases, overdue rent and alimony, court fines and penalties, and some student loans are not dischargeable in Chapter 7 bankruptcy. In addition, Chapter 7 bankruptcy does not discharge taxes or debts resulting from fraud or willful injury. This means that if debts have been incurred fraudulently or as a result of a criminal act, the debtor will still be responsible for the repayment of those debts, even if other debts are discharged. In summary, Chapter 7 bankruptcy in Washington can be used to eliminate certain types of debts. Dischargeable debts include most unsecured debts such as credit card debt, medical bills, and personal loans, as well as some secured debts, such as car loans and home equity loans. Certain types of debts, such as taxes, student loans, overdue rent and alimony, and debts resulting from fraud or willful injury are not dischargeable.

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

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