Chapter 7 and Your Debt

Although Chapter 7 bankruptcy is known as the "slate cleaning" bankruptcy, it does not discharge all of your debts.

Depending on your specific debts, some to most can be dismissed in a successful Chapter 7 bankruptcy filing. Among those debts that are not eligible for dismissal are student loans (unless you can prove undue hardship should you be forced to pay them,) alimony and back child support payments, debts for luxury items, incomes taxes from the past three years, or payments due to court judgments for intoxicated driving cases.

It is up to the bankruptcy judge overseeing your case to decide which debts will be paid back or dismissed. There are certain cases where a judge will rule not to dismiss your debts, including debts from theft; debts from a divorce settlement that might otherwise be dismissed; debts obtained through fraud; debts arising from malicious treatment of property; and debts from embezzlement.

To get help with your Chapter 7 filing, contact us to enlist the services of a Chicago bankruptcy lawyer.