When you’re under mountains of debt, it can feel like you’re alone. But the reality is that debt affects individuals and families in Minnesota every day. Whether it’s a medical bill or a vehicle loan, sometimes the amount of money you owe can seem insurmountable. And if the stress of having to deal with your creditors has become overwhelming, filing for bankruptcy may be an option for you.
In this post, we’ll talk about what is forgiven in Chapter 7 bankruptcy—a form of bankruptcy that allows forgiveness of your debts so you can start over. We’ll also discuss the specific types of debts that can and cannot be forgiven under Chapter 7.
What Does Chapter 7 Bankruptcy Involve?
Chapter 7 allows you to eliminate your debts and start over with a clean slate.
The process involves filing for bankruptcy, meeting with an attorney to discuss your financial situation, and determining whether or not you qualify. You’ll have to attend a meeting where a trustee will review the information in your petition to decide whether or not to discharge any debts listed in it, then finally receive the court’s official decision on whether or not you are eligible for chapter 7.
What Types of Debts Can be Forgiven in Chapter 7?
In general, most types of unsecured debt can be discharged through chapter 7 bankruptcy, including:
- Credit card debt
- Medical bills
- Personal loans
- Payday loans/cash advances
- Overdue utility bills
What Types of Debts Cannot Be Forgiven in Chapter 7?
The types of debts that cannot be forgiven in Chapter 7 bankruptcy include:
- Most student loans
- Child support or alimony
- Court fines and restitution (for example, if you were convicted of a crime)
- Some taxes owed to the IRS and state taxing authorities, including income taxes
- Debts related to fraud
- Debts arising from willful or malicious conduct by the debtor
Find Out If Chapter 7 Is Right for You
If you’re wondering whether Chapter 7 is right for you, you’ve come to the right place.
At Hoverson Law Offices, P.A., we have more than 35 years of experience helping clients solve their financial problems. We handle cases involving bankruptcy, debt consolidation, defending against creditor lawsuits, litigation, and student loan debt relief.
If Chapter 7 is a good fit, we’ll work with you to develop a plan to eliminate eligible debt while making sure that no creditor can come after you with harassing phone calls and threats.
We know that bankruptcy can be a stressful time in your life, so our goal is to ensure the process is as smooth and painless as possible. And we’re proud to say that our clients report excellent results from working with us.
We target Minneapolis, Bloomington, and the surrounding Minnesota communities.