What Debts are Dischargeable in Chapter 7 Bankruptcy in Florida?
If you are dealing with financial issues, you may not be able to pay the bills. Your credit card debt may be mounting. You may have trouble staying on top of the utility bills.
You are drowning in debt, and your paychecks simply are not covering everything. What are your options?
For many, Chapter 7 bankruptcyis a common solution. Although bankruptcy often carries a stigma, it’s an option worth considering for those in serious debt.
Bankruptcy can discharge certain debts. This means that the debts are legally forgiven, and the debtor is no longer obligated to pay them. However, not all debts are dischargeable. Some may remain after the process has been completed. Here is a look at the types of debts that are generally dischargeable in Chapter 7 bankruptcy:
- Credit card debt. This is the most common debt that people want to erase. Fortunately, most credit card debts, including those for overdue balances and fees, can be discharged.
- Medical bills. Medical bills are typically dischargeable, which can provide relief for individuals facing significant healthcare-related debt.
- Personal loans. Unsecured personal loans, including payday loans, can be discharged.
- Utility bills. Outstanding utility bills (such as those for electricity, gas, or water) that are overdue can be discharged.
- Certain types of lawsuit judgments. Judgments related to unsecured debts (like credit cards or personal loans) can often be discharged.
- Lease agreements. Obligations under residential leases (such as apartment rent) may be discharged if the lease was terminated before filing for bankruptcy.
- Business debts. Debts related to a sole proprietorship can typically be discharged, provided they are unsecured.
- Attorney fees. Fees owed to your bankruptcy attorney for the bankruptcy case itself may be discharged, though this varies.
What Debts are Not Discharged?
Not all debts are dischargeable. Here is a list of those that are not:
- Most taxes
- Debts incurred to repay most taxes
- Alimony and child support debts
- Most student loans (unless you can prove undue hardship, which is not easy to do)
- Fines, penalties, forfeitures, or criminal restitution obligations
- Debts for willful and malicious injury to a person or property
- Debts incurred through fraudulent activities, embezzlement, or intentional harm
- Debts for personal injury or death caused by the operation of a motor vehicle while intoxicated
- Debts owed to certain retirement plans, such as pensions, profit sharing, and stock bonuses
- Debts that were not properly listed in the bankruptcy schedules
- Debts that the bankruptcy court decides not to discharge
Contact Our West Palm Beach Bankruptcy Attorney Today
Bankruptcy can help eliminate many but not all debts. Make sure you know what to expect when you file.
West Palm Beach bankruptcy attorney Brian K. McMahon, P.A. can help provide you with relief. We will walk you through the process from start to finish. Fill out the online form or call (561) 658-1789 to schedule a consultation today. We serve the West Palm Beach, Boca Raton, Port St. Lucie, and South Florida areas.