About Jewel Caraway

About Me

About Jewel Caraway

My name is Jewel, and welcome to my site! I started it to help people find out more about family law and divorce attorneys after my own experience. I have to tell you--getting a divorce is never pleasant, but sometimes it's the only option. I won't go into details, but in my old marriage I just had to get me and my kids out. But the legal stuff was a pain to deal with. Not to say it wasn't worth it, but it was definitely hard to navigate. Divorce papers, the custody battle--if you don't have a guide and a good lawyer, it is so difficult. So the purpose of this site is to help you work the system. Good luck making a better life for yourself!

Debts and More Debts: How Chapter 7 Discharges Debt

If you are considering filing for Chapter 7 bankruptcy, you might be wondering how much of your debt can be forgiven. Unfortunately, not all debt can be discharged with a chapter 7 filing, but the action is still more than worth it for many consumers. Below you can find an overview of many common types of debt that can be discharged.

Debts: An Overview

When a debt is discharged, it disappears. Debts that are not attached to property are usually 100% discharged. Mortgages and auto loans are attached to property and that is a separate matter, however. You may want to get caught up on those debts so you can keep those assets. Be sure you list all debts on the paperwork your lawyer gives you even if you are not sure they can be discharged. Here, then, are some common forms of debt that can be discharged with a chapter 7 filing.

Medical Bills – Many otherwise financially savvy consumers end up being hit hard by medical debts. Healthcare costs are out of control, and it can only take a single trip to the hospital for a bill in the hundreds of thousands to be generated. Fortunately, chapter 7 offers those victims of high medical costs just the help they need because all healthcare bills can be discharged with bankruptcy. Just be sure you know about every outstanding bill and include them in your filing.

Credit Cards – This form of debt is common among filers because of the ease of use of the cards. Unless there are issues with misuse or fraud, all credit card debt can be forgiven with chapter 7. Speak to your bankruptcy lawyer about using cards in the time period prior to filing to avoid any problems with your discharge.

Personal Loans – This is one form of debt that sometimes gets left off the debt matrix when people file. It can be embarrassing to include a loan from a friend, relative, or co-worker on the bankruptcy forms. However, what you must never do is attempt to pay that debt off right before you file. Bankruptcy rules allow for that transaction to be undone so that the court can decide what needs to be paid off rather than the filer.

What Cannot Be Discharged

Certain types of debts are either more difficult to discharge or impossible. Those include:

  • Tax debts, particularly from recent returns.
  • Back child support and sometimes, back spousal support.
  • Student loan debt.
  • Money owed as a result of a lawsuit.

To find out more about what can be discharged and what may linger afterward, speak to a Chapter 7 bankruptcy attorney.