What are Discharged Debts in Chapter 7 Bankruptcy?

chapter 7 bankruptcyA Chapter 7 bankruptcy allows debtors to get a financial fresh start by discharging their unsecured debts. Secured debts such as a mortgage or car loan cannot be discharged by a Chapter 7 bankruptcy. When a debtor files bankruptcy, their property goes into an estate and must be sold unless it qualifies for an exemption.

Certain types of debts do not qualify for discharge in a Chapter 7 bankruptcy. Student loans, child support, spousal support and tax debt do not qualify for discharge. One of the most important questions to ask a bankruptcy lawyer is if your debt will qualify for discharge. If most of your debt is from student loans or unpaid child support, filing for bankruptcy may not be worth it.

For debtors with a lot of consumer debt from credit cards, medical bills and personal loans who cannot afford to make payments, filing a Chapter 7 bankruptcy can help them rebuild their credit score. There is no limit to the amount of qualifying debt that can be discharged, but a debtor must meet income requirements and must not hide assets when filing for bankruptcy.

Brooklyn bankruptcy lawyers may be able to help debtors who are interested in filing for bankruptcy determine if filing a Chapter 7 bankruptcy is right for them. Some debtors will need to file a different type of bankruptcy such as a Chapter 13 which may allow debtors who own a lot of non-exempt property to keep more of it than they could in a Chapter 7 bankruptcy. Brooklyn bankruptcy lawyers will need to know about all of a debtor’s assets, including personal property, real estate and money held in bank accounts.

A Brooklyn bankruptcy attorney can help debtors get a fresh start with a Chapter 7 bankruptcy by preparing all the paperwork, helping the debtor keep as much property as possible, helping the debtor reaffirm loans for secured property the debtor wants to keep and attending the Chapter 7 bankruptcy meeting with creditors.




Ursulova Law offices, P.C.

Contact Ursulova Law Offices, P.C. to find out how our NY Bankruptcy Attorneys can help you today. Our offices are located in New York, Brighton Beach, Brooklyn and Garden City.


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