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Russell G. Small and Kenneth Lenz

Can Chapter 7 bankruptcy discharge all my debts?

| Sep 21, 2020 | Chapter 7 Bankruptcy

There are many reasons a person in Bridgeport will file for Chapter 7 bankruptcy, also known as “liquidation bankruptcy.” A job loss in a tough economy, an unexpected illness that leads to overwhelming medical bills, or a divorce can all spell financial disaster. However, it is important to note that while Chapter 7 bankruptcy can relieve you of many debts, not all debts can be discharged through Chapter 7 bankruptcy.

First, it is important to list all debts and creditors in your Chapter 7 bankruptcy filing. Any debts not listed on your bankruptcy filing at the outset may not be discharged. In addition, student loans generally cannot be discharged through Chapter 7 bankruptcy unless it can show that repaying them would lead to an undue hardship.

Past due federal, state and local taxes are generally not dischargeable through Chapter 7 bankruptcy. In addition, past due child support and alimony payments also cannot be discharged through Chapter 7 bankruptcy. If you owe any fines, penalties or restitution issued by the government, these debts cannot be discharged through Chapter 7 bankruptcy. The same can be said for any court fees owed.

If you were ordered to pay personal injury or wrongful death damages following a drunk driving incident, these debts cannot be discharged through Chapter 7 bankruptcy. If you filed for bankruptcy in the past, and certain debts were non-dischargeable in that filing, they will remain non-dischargeable in future filings. Finally, if you owe money to some types of pension plans or if you are past-due on your condominium dues and fees, these debts cannot be discharged through Chapter 7 bankruptcy.

However, do not be discouraged. There are many debts that can be relieved through Chapter 7 bankruptcy, helping you obtain the fresh financial start you need moving forward. Legal professionals are available to help you address your financial problems and take the steps necessary to eliminate your debts.

 

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