When you have overwhelming and burdensome financial issues, bankruptcy may become an extremely tempting option. In considering the many different options you have for paying back your debts, you may come to find that filing for Chapter 7 bankruptcy is the best option. This is generally a good choice for people looking to get their debts wiped out so that they can start anew. However, there are only certain debts that are considered dischargeable, while others are still required to be paid.
Excluding some non-dischargeable debts, a large number of your debts can be wiped out through Chapter 7 bankruptcy. Getting these debts discharged means that it is no longer legally necessary for you to pay the creditors, and they are not allowed to collect anything from you anymore. Among the most common debts that are usually discharged are:
- Credit card debt
- Past due amounts for utility bills
- Business debts
- Social security overpayments
- Balances on repossession deficiency
- Dishonored checks
- Loans from family, friends and employers
- Debts from lease agreements
- Penalties from taxes (past a set number of years)
- Revolving charge accounts (not including the extended payment charges)
- Lawyers fees (not including alimony and child support awards)
There are just some of the possible debts that can be discharged through Chapter 7 bankruptcy, but some of these can become non-dischargeable if the court determines that any of these debts are related to any fraud or misconduct. It is also important to note that aside from the debts that you acquired or built up before you filed for bankruptcy, the debts you have gained after filing your petition are still your responsibility. While filing for Chapter 7 bankruptcy may seem complicated and confusing at first, it may nevertheless be the best way out of your financial predicament.