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Which debts remain after filing Chapter 7 bankruptcy?

On Behalf of | Nov 16, 2019 | Bankruptcy | 0 comments

Debtors who are in over their heads do have an escape. Chapter 7 bankruptcy allows a person to embrace a new start. Through Chapter 7, you discharge your debts through liquidation. Your liquidated assets pay off your creditors. Unfortunately, you cannot discharge everything. Investopedia explains the debts that you have to keep.

If you are new to bankruptcy, you may not know the different debts that you cannot discharge. The U.S. Bankruptcy Code describes the dos and don’ts of bankruptcy. It explains which debts you can never discharge, no matter the circumstances.

If you are a parent of a child who you pay child support to, you have to retain that obligation. If you owe your former spouse child support, you still have to pay it. Additionally, if you owe alimony, you cannot eradicate that debt. Like child support and alimony, there are debts that you continue to pay. Taxes, mortgage debts and any debts that you incur through illegal means or fraud remain on your record.

When you file for Chapter 7 bankruptcy, you owe the debts that you did not discharge. For instance, you will be able to keep your primary home and your primary car. If you have a car loan, condominium fees or mortgage debts, you still have to pay these. There are particular laws and standards that dictate what you can keep. Normally, the assets you can keep include your home, vehicle, clothes and other non-luxury items.

The above article is meant to inform on bankruptcy and the debts that you cannot discharge. This is not to be interpreted as legal advice.