When you are considering filing for Chapter 7 bankruptcy, one of the foremost concerns in your mind is almost certainly which debts are dischargeable and which are not. A debt that has been discharged is a debt for which you are no longer responsible. Your dischargeable debts can greatly reduce the overall amount of debt for which you are held accountable.
List of Dischargeable Debts
Under current Chapter 7 bankruptcy law, the following items are dischargeable:
- Debts related to your business
- Personal loans
- Judgments against you, such as accident claims
- Negligence claims
- Deficiencies related to vehicle repossessions
- Credit card balances
Additionally, the following debts may be considered dischargeable, unless a creditor can prove to a bankruptcy court that they are not:
- Settlements and obligations related to a divorce
- Debts caused by your breach of fiduciary duty
- Debts related to fraud
- Debts caused by the dishonesty of others
- Debts resulting from the malicious injury of others
Knowing which debts you can be held accountable for and which you cannot is very important in determining if Chapter 7 is right for you.
If you or someone you love is facing heavy unsecured debts and doesn’t know what to do, the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC may be able to help. To learn more about what we can do for you, contact us today by calling 414-377-0518.