Chapter 7 Bankruptcy Lawyers - Nick Davis Law

Chapter 7 discharges most unsecured debts, such as credit card debt, medical bills, and personal loans. Certain debts like student loans, taxes, and child support are typically non-dischargeable.

Yes, filing for Chapter 7 triggers an automatic stay that immediately stops wage garnishments, allowing you to keep your earnings.

Older income taxes may be eligible for discharge, but recent tax debts are typically not discharged in Chapter 7.

Yes, payday loans are typically considered unsecured debt, which means they can be discharged in Chapter 7 bankruptcy. However, if you took out a payday loan shortly before filing, it may raise concerns with the court. Loans taken out within 90 days of filing can be viewed as fraudulent, and the creditor may object to their discharge. It’s important to discuss the timing of any recent loans with your attorney.

In most cases, student loans are not dischargeable in Chapter 7 bankruptcy. However, if you can prove “undue hardship”—which is a very high standard—you might be able to discharge them. This usually requires filing a separate lawsuit within the bankruptcy case, called an adversary proceeding, and demonstrating that repaying the loans would make it impossible to maintain a basic standard of living.

No, alimony and child support obligations are considered non-dischargeable in Chapter 7 bankruptcy. These debts must continue to be paid as they are viewed as necessary for the support of dependents. However, other types of divorce-related debts, such as property settlement agreements, might be dischargeable, depending on how the court categorizes them. It’s important to get legal advice to understand how your divorce debts will be treated.

If you’ve used credit cards for luxury goods or services (over $950) within 90 days before filing, or taken out cash advances (over $1,000) within 70 days of filing, the creditor can challenge the discharge of those specific charges. These could be deemed fraudulent because they might be seen as borrowing with no intent to repay. However, regular credit card purchases are generally dischargeable.

Yes, medical bills are fully dischargeable in Chapter 7 bankruptcy, and they are often one of the primary reasons people file. If you’ve been overwhelmed by unexpected medical expenses or ongoing healthcare costs, filing for Chapter 7 can help you eliminate this debt and start fresh without the burden of paying off those bills over time.

Yes, personal loans from friends or family members can be discharged in Chapter 7 bankruptcy. While this might feel uncomfortable, bankruptcy law requires that you treat all creditors equally, which means these debts must be included in your filing. After your bankruptcy is complete, you may choose to repay friends or family voluntarily, but there is no legal obligation to do so once the debt has been discharged.

Yes, past due rent can be discharged in Chapter 7 bankruptcy, which includes any unpaid rent or lease obligations that existed before the filing date. However, if you want to remain in your rental property, you’ll likely need to catch up on rent and reaffirm your lease. If you plan to move out, filing for bankruptcy can help you eliminate the financial liability for breaking the lease.