What is a dischargeable debt?

A dischargeable debt is a debt that can be eliminated when filing for bankruptcy. In South Carolina and under the US bankruptcy code, these types of debts can be discharged. This means that the debtor no longer has any obligation to repay the debt. Common examples of dischargeable debts include credit card debt, medical bills, personal loans, payday loans, and utility bills. In addition, some taxes, such as those that are more than three years old, may also be dischargeable. When a debtor files for bankruptcy, a process known as the automatic stay begins. This process stops creditors from collecting on the debt until the bankruptcy court determines the outcome. If the debt is ruled dischargeable, then the creditor will no longer have the right to collect the debt. The process of discharging debts in South Carolina depends on the type of bankruptcy that is filed. For Chapter 7 bankruptcies, most unsecured debts are dischargeable. However, for Chapter 13 bankruptcies, the court can determine whether certain debts will be discharged. Determining which debts are dischargeable can be a complex process. It is important to seek the advice of an experienced bankruptcy attorney before filing for bankruptcy in South Carolina. An attorney can provide advice on the specific types of debts that are eligible for discharge and guide the debtor through the process to obtain a successful outcome.

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What is a dischargeable debt?

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