DiTocco Law Group, PLLC
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Some debts that remain after Chapter 7 bankruptcy discharge

Newspapers and TV channels across the country often carry news about the debt crisis that is so prevalent in America. There are many people in South Florida too who are in the same situation. Some of those people may be planning to file for bankruptcy, or have already filed for bankruptcy, under Chapter 7 of the United States Bankruptcy Code. According to the rules of this chapter, all the assets of a debtor, except certain exemptions, are liquidated and the money raised from the liquidation is used to repay creditors.

A Chapter 7 bankruptcy is often the preferred option for debtors who do not have a steady source of income, and once those debtors complete the Chapter 7 bankruptcy process and obtain discharge from the bankruptcy court, those debtors do not have any further personal liability for most of the debts. The Chapter 7 discharge also ensures the end of all credit collection efforts. However, it is important to remember that there are certain debts that remain even after a Chapter 7 bankruptcy discharge.

Per the existing bankruptcy laws, a Chapter 7 filing does not discharge a debtor from the debts that were not included in the bankruptcy filing. In addition, a Chapter 7 filing does not discharge a debtor from the liability of state and federal taxes, student loans, child support and alimony, fees or fines imposed by a federal or state government entity, legal expenses, debts arising from personal injury or wrongful death claims and debts that are not discharged in an earlier bankruptcy filing. There may also be some other debts that cannot be discharged but those depend on the circumstances of a particular individual debtor.

A Chapter 7 bankruptcy filing may not discharge all of the debts accrued, but a debtor should keep in mind that a Chapter 7 discharge ensures relief from those debts that can have a really long-lasting effect on an individual's finances. That being said, filing for bankruptcy under Chapter 7 is probably one of the most important decisions that an individual may need to make and, therefore, it is important to make sure that the decision is made only after understanding the process thoroughly, preferably, from a professional.

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