Readers may be surprised to learn that a person can emerge from the Chapter 7 bankruptcy process with many debts still intact. This is because not all debts can be discharged. When pursuing bankruptcy, a person should have a plan for how they will manage their post-discharge debts and that plan should begin with knowing what they will be liable for once their Chapter 7 proceedings have ended.
Debts that a person acquires due to judicial orders or judgments can generally not be discharged in Chapter 7 bankruptcy. These debts can include, but are not limited to, orders for child support and spousal support, fines for criminal convictions or personal injury liabilities, and some tax debts.
Additionally, debts that a person fails to include in their bankruptcy proceedings will not be discharged once the bankruptcy process is over. This is because creditors who were not involved in the proceedings cannot be held to the legal outcomes.
Finally, student loans that are funded by the government often survive Chapter 7 bankruptcy proceedings. There are ways for debtors to seek relief from their student loans, but, in most cases, these debts will not be discharged in a Chapter 7 bankruptcy proceeding. This post does not discuss all ways that debts may survive Chapter 7 bankruptcy and is intended to educate readers about what may happen once their debts are discharged. If you are considering filing for Chapter 7 or any other type of bankruptcy, you may find it helpful to contact an attorney to answer any questions you may have.