Boston Bankruptcy Attorney

Chapter 7 Bankruptcy: Which Debts can be Discharged?

Liquidation, or Chapter 7 Bankruptcy, allows for a debtor to eliminate the majority of his or her debts through discharge. Discharge is the release of a debtor from personal liability for certain types of debt. The debts that are dischargeable are set forth in the Bankruptcy Code.

If a creditor doesn’t file a suit to stop the debtor from getting out from under their debts within 60 days of the 341 meeting, the bankruptcy court will enter an order granting the discharge of all the dischargeable debts that existed the day the bankruptcy case was filed.

Dischargeable Debts

Examples of dischargeable debts include:

• Personal loans
• Credit card debts
• Repossession deficiencies
• Car accident claims
• Judgments
• Business debts
• Leases
• Guaranties
• Negligence claims

Some debts may or may not be discharged at the discretion of the bankruptcy court. For these debts not to be discharged, the creditor must ask the court to make a determination. Without a request from a creditor, these debts will be discharged. These debts include:

• Property settlements or division of debts in divorce
• Willful and malicious injuries to others
• Embezzlement
• Debts incurred through fraud or dishonesty
• Debts arising from a breach of fiduciary duty

Non-Dischargeable Debts

Other debts are not dischargeable, ever. These include:

• Recent taxes
• Trust fund taxes
• Child or family support debts
• Criminal fines or restitution
• Debts arising out of auto accidents involving intoxication
• Penalties owed the government that are not tax penalties
• Student loans
• Debts from prior bankruptcies where the debtor was denied a discharge

Contact a Boston Bankruptcy Lawyer

If you are considering filing for Chapter 7 bankruptcy, contact a Boston bankruptcy lawyer from Joshua Spirn & Associates at 1-800-975-5346 to discuss your case and to determine if bankruptcy is right for you.