Chapter 7

Chapter 7 Bankruptcy can discharge many different types of debt. Chapter 7 is for those who don’t have the means to pay back their debt. The types of debt that can be discharged with chapter 7 include:

  • Medical bills
  • Unpaid credit card balances
  • Utilities
  • Phone bills
  • Car loans
  • Deficiency after car repossession or home foreclosure

Though some debts cannot be discharged, including:

  • Child support
  • Alimony
  • Taxes and government fees
  • Court fines
  • Certain taxes
  • Liens on cars and homes

Some types of debt can sometimes be eliminated with chapter 7, including student loans and tax debt. Whether these can be discharged is dependent on your situation. Chapter 7 stays on your credit report for a shorter time than chapter 13. Chapter 7 stays on your credit report for up to 7 years compared to up to 10 years with chapter 13.

One reason someone might be hesitant to file for chapter 7 bankruptcy is that their assets can be liquidated to pay back as much of their debt as possible. This means homes being foreclosed and cars being repossessed. However, the debt relief it offers might appeal to those buried in debt with no way to pay it back.

Frequently Asked Bankruptcy Questions

  • How do I qualify for chapter 7 bankruptcy?
  • What assets are at risk under chapter 7 bankruptcy?
  • What is considered when establishing a repayment plan under chapter 13 bankruptcy?
  • How long does a bankruptcy show up on my credit report?
  • Can I attempt to negotiate with creditors on my own?


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