What happens to my debts when filing for Chapter 7 Bankruptcy?

When filing for Chapter 7 Bankruptcy in California, debts that fall under unsecured debt such as medical bills, credit cards, personal loans, and utility bills are generally discharged. These debts are usually canceled by the court, meaning you are no longer obligated to pay off those debts. However, certain creditors may be able to object to your discharge or may have special provisions that you will have to meet. For example, secured debt, such as mortgage or auto loans, may still need to be paid off if the creditor is able to prove that you are able to afford it. Additionally, government-related debts, such as student loans, taxes, and child support arrears, may not be discharged during a Chapter 7 bankruptcy filing. When filing for Chapter 7 Bankruptcy in California, consult with an experienced attorney to ensure that you understand all of the terms of your filing and what you may owe after it is discharged. Different creditors and debts may have different requirements and exemptions that may help you understand how and what is discharged. Your attorney will be able to best guide you through the process.

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What happens to my debts when filing for Chapter 7 Bankruptcy?

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