Does Chapter 7 bankruptcy wipe your slate completely clean?

Many people enter bankruptcy proceedings because something has gone wrong with their financial state and a clean slate is needed. From sudden changes in financial holdings or real estate values to unexpected medical bills, finances can change quickly. Bankruptcy is a good tool for setting things straight again. Chapter 7 bankruptcy is a great way to wipe your debt away and move into the future. But it doesn't always wipe the slate perfectly clean.

A number of debts remain following a Chapter 7 bankruptcy. Which debts remain sometimes depends on the way a bankruptcy case is handled. For example, debts must be listed on the bankruptcy schedules or petitions to begin with. They can't always be added at a later date, which makes gathering accurate information important.

Some debts are not normally dischargeable in a bankruptcy, so they can't be listed. Student loans, alimony, child support, certain taxes and debts related to personal injury lawsuits won against you are also not usually dischargeable in a bankruptcy. In some cases, student loans and other types of debt might be discharged if you can show that making payments on them would cause an undue hardship -- even if payment structures were changed.

Debts that were considered under previous bankruptcies and were not discharged at that time might not be allowed under a new bankruptcy. Also, if you own fees to a condo organization or pension plan, those are not likely to be discharged in Chapter 7 proceedings.

Understanding which debts will be allowed in a bankruptcy proceeding is important to the proceeding and the overall decision to file. Working with a professional to review your financial status can help you make a determination whether bankruptcy is the right debt relief option.

Source: FindLaw, "Debts that Remain After a Chapter 7 Discharge," accessed Sep. 08, 2015

No Comments

Leave a comment
Comment Information
  • MCBA | Maricopa County Bar Association
  • State Bar of Arizona
  • ABA | American bar Association | Defending Liberty Pursuing Justice
  • Oregon State bar
  • NACBA | National Association of Consumer Bankruptcy Attorneys
  • NACA | National Association of Consumer Advocates
  • Best Attorney Client Satisfaction Badge
Schedule A Consultation Today

Attorneys You Can Depend On And Trust

From our office in Surprise, The Dodds Law Firm, PLC, serves our clients' needs throughout the Valley. To schedule a consultation with a lawyer, call 623-208-6098 or toll free at 877-827-9906. You can also contact us online.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy