What Types of Debts Get Discharged in Chapter 7 Bankruptcy?

This past year has brought on many hardships to families and individuals across the globe. Countless people have been forced to make their health a priority over finances. These past few months have been quite troublesome for those who have not been able to get ahold of and control their financial interests. Bills are still coming, and debt is still mounting. Debt collectors are calling and demanding payments that you may not have the means to fulfill. People are scrambling to negotiate with creditors, make minimum payments, and do just about anything to keep their head above water. Often, it can seem like there is no end in sight. Our clients sometimes will think that there is no way for them to ever recover from their debt. At Ruben Law Firm, we aid in helping those individuals see a way out. We show our clients that there is life after bankruptcy, and there is a way to get back on track. Chapter 7 Bankruptcy can be a viable solution for those looking to discharge any possible debts. To qualify for Chapter 7, an individual must meet several requirements based on assets and income When taking a look at all expenses and bills, many people will be confused about what types of debt they can discharge, and what types of debt they will have to pay off despite filing for bankruptcy. Many clients have questions about what type of debts can be discharged in bankruptcy, and which of their debts qualifies. To make it easier, our Maryland Bankruptcy Attorneys have broken down the different types of debt that qualify to be discharged as a part of bankruptcy in the state of Maryland. This list is not exhaustive, and there are also certain circumstances where other types of debt may be considered to be discharged.

• Medical Bills: Medical bills can be discharged as part of Chapter 7
• Credit Card Bills: Credit card bills can be discharged as part of Chapter 7
• Past Utility Bills (Phone Bills, Gas and Electric Bills, Internet Bills): Past utility bills can be discharged as part of Chapter 7
• Unsecured Personal Loans: Personal loans can be discharged as part of Chapter 7

There are also certain types of debt that generally cannot be discharged as part of a Chapter 7 Bankruptcy. Again, this list is not all-encompassing, and there are rare circumstances in which these debts may be considered for discharge.

• Tickets/Citations: Tickets and citations cannot be discharged as part of Chapter 7
• Alimony and Child Support: Alimony and child support cannot be discharged as part of Chapter 7
• Student Loans: Student loans cannot be discharged as part of Chapter 7

If you would like to learn more, check out David Ruben’s many videos about bankruptcy on YouTube. If have any questions at all about whether or not bankruptcy is the right option for you, do not hesitate to reach out to us 24/7 at 410-766-4044.