In a Chapter 7 bankruptcy in Nashville, like in the rest of the United States, many types of debts can be discharged (eliminated), allowing the debtor to get a fresh financial start. However, not all debts are eligible for discharge. Here are some common types of debts that can typically be discharged in a Chapter 7 bankruptcy:
- Credit card debt: Unsecured credit card debt is generally dischargeable in Chapter 7 bankruptcy.
- Medical bills: Medical debts are typically dischargeable.
- Personal loans: Unsecured personal loans can usually be discharged.
- Past-due utility bills: Utility bills that are in arrears can often be discharged.
- Collection agency accounts: Debts that have been sent to collection agencies can often be discharged.
- Business debts: If you are personally liable for business debts, they may be dischargeable.
- Civil court judgments: Certain judgments, such as those related to breach of contract, personal injury, or other civil matters, can be discharged.
- Lease and contract obligations: Lease obligations and contractual debts, such as leases on apartments or equipment, can often be discharged.
- Overdrawn bank accounts: Negative balances in bank accounts can usually be discharged.
- Repossession and foreclosure deficiencies: If a creditor repossessed or foreclosed on property and there is a remaining deficiency balance, it may be dischargeable.
- Payday loans: Most payday loans are unsecured and can be discharged.
However, it’s important to note that not all debts are dischargeable in Chapter 7 bankruptcy. Non-dischargeable debts may include:
- Child support and alimony: These obligations cannot be discharged.
- Recent taxes: Income taxes can be discharged in certain circumstances, but there are strict criteria that must be met.
- Student loans: Student loan debt is generally not dischargeable, unless you can demonstrate undue hardship through an adversary proceeding.
- Government fines and penalties: Fines, penalties, and restitution ordered by a government entity are usually non-dischargeable.
- Debts arising from fraud or theft: Debts incurred through fraudulent or criminal activity may not be discharged.
- Court-ordered payments: Certain court-ordered payments, like victim restitution, cannot be discharged.
- Debts not listed in the bankruptcy petition: If you fail to include a debt in your bankruptcy filing, it may not be discharged.
It’s important to consult with an experienced bankruptcy attorney in Nashville to assess your specific financial situation and determine which of your debts are dischargeable in a Chapter 7 bankruptcy case. Bankruptcy laws can be complex, and the specific details of your case will play a significant role in which debts can be discharged.