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Discharged Debts In Chapter 7 Bankruptcy

Upon filing for Chapter 7 bankruptcy, you are not required to directly make a payment for any portion of your debts. The trustee will split any of your non-exempt assets among your creditors, and the remainder of the debt will be discharged by the court. Filing for Chapter 7 bankruptcy is a mechanism that provides individuals a fresh start. Seek assistance from a qualified bankruptcy attorney to ascertain whether your scenario fits the requirements of filing for Chapter 7. 

Types of dischargeable and not dischargeable debts under Chapter 7

Bankruptcy provides a means for individuals with outstanding medical bills and credit card debt to relieve themselves from the obligation to make a payment. Although a winner of a civil lawsuit judgment can garnish your wages or place a lien on your home, judgments can generally be discharged. In addition, the following types of debts are also dischargeable under 11 U.S.C. §727:

  • Duties under leases and contracts
  • Promissory notes and personal loans
  • Debts due to co-borrowers, unless the co-borrower is your spouse and the obligation is memorialized in a separation or divorce agreement

In contrast, under 11 U.S.C. §523, there are particular debts in which Chapter 7 bankruptcy does not discharge. One example of such a debt includes child support, alimony and any debt dealing with alimony, maintenance, or support. To be distinguished as non-dischargeable, a domestic support obligation must be provided in:

  • Court order authorizing support obligations
  • Child support enforcement agency determination of support obligations
  • Divorce decree
  • Separation agreement

Experienced New York consumer bankruptcy lawyers can help determine whether a debt may be discharged in a Chapter 7 bankruptcy. 

Acquire valuable and comprehensive advice from a New York lawyer

By contacting Mark E. Cohen, Esq., clients acquire effective representation. The firm represents individuals seeking to file for bankruptcy in Queens and the surrounding areas.  

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