What Debts are Discharged in Chapter 7?

Generally, all unsecured debts (e.g. Credit Cards, medical bills, loans, etc.) are discharged in chapter 7 except the following:

• Debts that are not listed in the bankruptcy schedules
• If someone has a judgment against you that is a lien against your house or other real estate the lien is not removed by the bankruptcy; however your personal liability is discharged (i.e. the creditor can no longer take money from your bank account or from your paycheck)
• Income taxes for the past 3 years
• Withholding and Sales taxes owed by a business
• Matrimonial debts for alimony, maintenance or support
• Post-bankruptcy rent and maintenance charges if you are actually living in the unit or collecting rent from someone else.
• Student loans, except in extreme situations
• Debts relating to death or injuries caused by drunk driving or driving under the influence of drugs
• Criminal Restitution, fines, parking tickets
• Money taken from credit cards or loans used specifically to pay taxes

Although creditors listed below have the right to sue you in the bankruptcy court to have the money you own them survive bankruptcy, if they fail to do so within two months after your court hearing, even these debts can be discharged:

• Debts based upon false credit applications or fraud
• Debts based upon fraud when you were acting as a fiduciary, or for embezzlement or larceny
• Debts based upon willful and malicious injury
• Matrimonial property settlements