What You Need to Know About Chapter 7 Discharge

When discussing filing for Chapter 7 bankruptcy, you may hear the term discharge being used frequently. While most of your debts will be affected by the Chapter 7 discharge, some may not be.  I am going to explain to you what the Chapter 7 Discharge is and what to expect from it.

What Qualifies?

Most of your debts can be discharged through Chapter 7 bankruptcy. Most people already know that items such as credit cards, medical bills and collection accounts will qualify for discharge under Chapter 7.  You can also get a Chapter 7 Discharge on past due utility bills or money owed to an old landlord.  You may also receive a discharge for social security over payments and veterans assistance benefits. With all of these items qualifying for a discharge, you may wonder what does not qualify.

Non-Qualifying Items.

Although some attorney fees may be able to be discharged, those related to alimony or child support usually do not go away with a Chapter 7 Discharge. You also may not be able to receive a discharge for student loans.  In some circumstances, the Chapter 7 discharge can be challenged or objected to.  If you injured someone intentionally or drove in an intoxicated state and caused injury, that debt may not be discharged in the bankruptcy.  You may also not receive a discharge for debts incurred by fraud.  The bankruptcy code specifies many exceptions to the Chapter 7 Discharge, but most of them won’t apply to your case.

What does the discharge mean?

Once you have received your debt discharge, you are no longer legally responsible to pay the creditors. Creditors are not allowed to attempt to collect the debt by any means. The amount of time it takes to receive a full discharge of your debt will depend on the length of your bankruptcy proceedings, but you will usually get a discharge in three or four months after the case was filed.  The bankruptcy discharge does not, generally, get rid of liens on property.  Talk to your attorney about liens on your real estate from judgments or other types of liens.

Comments are closed.