Will Chapter 7 Bankruptcy Eliminate All of My Debts?

Not all debts can be discharged during the Chapter 7 bankruptcy process. In fact, some of the debts that cause Rockland residents the most concern may survive bankruptcy and continue to be due even after an individual has successfully completed the requirements of the Chapter 7 filing.

For example, student loan debts are generally not dischargeable under Chapter 7 bankruptcy. Though there are exceptions to this rule, educational loans will usually survive a person’s personal bankruptcy.

Additionally, creditors who are not named in the Chapter 7 bankruptcy filing may be able to pursue their money from a debtor after the bankruptcy process ends. That is because if they were not named in a bankruptcy filing, they cannot be bound by its terms and discharge results. This is why it is important for bankruptcy filers to create comprehensive lists of creditors at the beginnings of their cases.

Judicially mandated support payments that are in arrears, such as those related to child support and spousal support, may not be discharged in a Chapter 7 bankruptcy proceeding. Financial support imposed for the benefit of a person’s children or former spouse is intended to serve their interests; as such debtors may not be relieved of their support obligations through their bankruptcy filings.

These are only a few of the types of debts that individuals may see survive their Chapter 7 bankruptcies. Attorneys who practice bankruptcy law can advise their clients about the many others that exist, as well as answer case-specific questions that their clients may have about their bankruptcy plans. As different individuals confront different challenges during bankruptcy, it is important that they seek out advice about how best to approach their legal and financial needs.