What Debts Can You Discharge In Chapter 7 Bankruptcy?

When you file for chapter 7 bankruptcy, you are given the opportunity to discharge your debts. This allows you to take care of debts and no longer get hassled by your creditors. However, only certain debts can be discharged.

Cash Advance

The first thing chapter 7 might be able to discharge is a cash advance you received from your credit card account. However, not all cash advances will be eligible for a discharge. It must be a cash advance that was requested before filing for bankruptcy, be over a certain amount, and be used only for personal reasons. If you got a small amount for personal reasons or a large quantity of money to pay for business expenses, you will still need to pay that back.

Credit Card Charges

While credit card debt is usually included as a debt discharge during chapter 7 bankruptcy, recent charges may not be. However, the creditor must prove that the charge occurred shortly before filing for bankruptcy and must ask the court to make an exception and not discharge those debts. The creditors will need to show that the sum was over a certain amount as well as the date that the charge was made. There may also be stipulations about what the charge was for. Debt due to buying groceries with a credit card is most likely accepted as a discharge, but using the credit card to eat at a restaurant or buy luxury items may not be.

Recent Bills

Most bills that have not yet been paid will be discharged during chapter 7 bankruptcy. This includes bills related to utilities and those in collections. You might have cell phone, cable, or Internet bills that didn't get paid and are now in collections. These debts can be discharged during bankruptcy. You can also get other bills discharged, including any medical bills you have or bills related to your lease agreement.

Car Accident Claims

If you were in a car accident and it was your fault, the other driver can sue you for damages, including property damage and bodily injury. If you still have legal or medical bills that you have not yet paid due to your financial situation, those are usually discharged. The exception is if the accident was caused by driving while intoxicated. If you were under the influence of drugs or alcohol when you got into an accident, you will still b responsible for these debts.

For more information about your options when filing Chapter 7 bankruptcy, contact a professional such as Curtis A. Anderson, Attorney At Law.