What debts can be discharged in Chapter 7 Bankruptcy?

In Chapter 7 bankruptcy law in California, certain debts can be discharged or eliminated. Generally speaking, debts that can be discharged under Chapter 7 include credit card debt, medical bills, personal loans, utility bills, and some civil judgments. More specifically, the following debts can be discharged under Chapter 7: unsecured debts; secured debts where the collateral has been surrendered; certain taxes (generally those more than three years old); any claim or judgment arising from services, property, or credit provided by a store or other merchant; any deficiency as a result of repossession; debts arising from accidents and motor vehicle violations; contract debts; lease indebtedness; and certain court-ordered payments such as alimony or maintenance. In addition, certain debts may be partially discharged, such as a loan on a car or house, if the individual filing for bankruptcy does not plan on keeping the property. The remaining balance of the loan will be discharged, and the individual will need to enter into a new agreement with the lender in order to retain the property. Finally, some debts are not eligible for a discharge under Chapter 7 bankruptcy. These include student loans, spousal support, certain tax debts, debts from criminal acts, and debts from breach of fiduciary duty. Also, if an individual has committed fraud or provided false information in an effort to receive credit, those debts will not be discharged.

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What debts can be discharged in Chapter 7 Bankruptcy?

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