A Chapter 7 discharge means that a person's debt has been legally cleared and he or she does not have to repay creditors. A Chapter 7 discharge is obtained by filing and maintaining a Chapter 7 bankruptcy case and being eligible for this type of debt relief through a means testing process that looks at income in relation to debt. Someone who is not eligible for a Chapter 7 discharge due to means testing is given the option of filing for a Chapter 13 bankruptcy.
Nondischargeable Debt in a Chapter 7 Bankruptcy
It is important to note that not all debts are discharged by a Chapter 7 discharge. Certain types of debts are by law not dischargeable under Chapter 7. Debts of this type must still be repaid after bankruptcy.
Common examples of nondischargeable debt include:
- Child support
- Student loans
- Court fines and penalties, including criminal restitution
- Certain types of tax debt
Start Getting Yourself Out of Debt Today
If you're drowning in debt, don't lose hope. Steffens Law Office can help you determine if a Chapter 7 discharge is the best option for you. Contact our experienced bankruptcy attorney today to schedule a free, no-obligation consultation.