A Chapter 7 discharge, also known as a straight or liquidation bankruptcy, is a court order releasing a debtor from all of his or her dischargeable debts and ordering the creditors not to attempt to collect them from the debtor.  A debt that is discharged is a debt that the debtor is released from and does not have to pay. 

Common Types of Debt Discharged in Chapter 7 Bankruptcy

Common forms of debt discharged in a Chapter 7 bankruptcy include:

  • Personal loans
  • Medical bills
  • Credit card charges
  • Car loans
  • Dishonored checks (unless based on fraud)
  • Past-due utility bills
  • Lease agreements
  • Civil court judgments
  • Collection agency accounts
  • Repossession deficiency balances
  • Auto accident claims (unless involving drunk driving)
  • Business debts 

If a creditor attempts to collect on debt that has been discharged in a Chapter 7 bankruptcy, they can be subject to sanctions and liable for damages.

How We Can Help

At Steffens Law Office, we understand how difficult dealing with debt can be. If you're thinking of filing for bankruptcy, contact us to schedule a case review. We'll explain the process and answer any questions you might have about your specific debts.