When you file for Chapter 7 bankruptcy, you might be looking forward to the day your petition is finalized and totally debt-free. However, depending on your debt type, you might only be partially free of debt during your bankruptcy. While most of your debts can be discharged, some are not eliminated.

What Is a Chapter 7 Discharge?

During Chapter 7 bankruptcy proceedings, most of your debts will be discharged. This means that after the bankruptcy process, you will be rid of most of your liability for the debts. This makes Chapter 7 more appealing to many debtors when compared to Chapter 13 bankruptcy, where you need to repay your debts through a repayment plan.

When filing for Chapter 7 bankruptcy, you may need to liquidate your non-exempt assets to pay off some of your debts. Most of your remaining debts are typically discharged by the court. In general, your unsecured debts are eliminated. This can include credit card debt, medical bills, and unsecured personal loans.

Your debts will not be discharged until the Chapter 7 bankruptcy process is complete, but as soon as you file for bankruptcy, an automatic stay will go into effect. This means that creditors must stop harassing you and trying to collect on your debt.

What Debts Cannot Be Discharged?

When you file for Chapter 7 bankruptcy, there are certain debts that the court will not discharge. These can include the following:

· Any debts you did not reveal at the beginning of the bankruptcy process.

· Some tax debts.

· Student loans.

· Child support.

· Spousal support.

· Government-issues fines or penalties.

· Court fees.

· Money owed as part of a personal injury or wrongful death case.

· Debts that were not discharged in a previous bankruptcy.

· Certain types of debts that are owed on condominium dues.

· Debts incurred from fraud.

· Debts from items purchased within 90 days before filing for bankruptcy.

· Debts incurred from malicious acts or illegal activities.

· Any new debt after the date of filing.

When the Discharge of Debts Is Denied

In certain situations, even if you have a debt that should generally be eligible to be discharged, the court can deny the discharge. While this doesn’t happen often, it can occur.

To do this, a creditor must prove to the court that the debt doesn’t meet the conditions for a discharge. Some reasons that the court might deny the discharge include:

· You didn’t provide sufficient financial records.

· You couldn’t explain any missing assets.

· You committed a bankruptcy-related crime.

· You disobeyed a court order.

· You engaged in fraudulent transfers, concealment, or destruction of assets to avoid claiming them as part of your estate.

· You didn’t complete the mandatory debt course.

In some circumstances, the court can also revoke discharged debt. Some situations where the court might do this include:

· If you acquire property that was part of your estate.

· If the discharge was obtained through fraudulent actions.

· If you failed to surrender property or assets to the trustee.

· If you could not provide documents or made a mistake during an audit of your case.

Contact A Bankruptcy Attorney

When filing for Chapter 7 bankruptcy, you must ensure you understand what debts can be discharged and which ones you will still be responsible for paying. You need to hire an experienced attorney to help you through the bankruptcy process and ensure you understand your debts. Our attorneys can help you determine what steps you need to take. We will also clear up any confusion you might have after your bankruptcy is final! Don’t let debt ruin your life—contact us online or call (405) 529-9377 for a free case review.