Common Kinds of Debt That are Dischargeable in Consumer Bankruptcy Cases

Are you thinking about filing for Chapter 7 or Chapter 13 bankruptcy, and are you wondering about types of debt you have and whether they are dischargeable? While there are some types of debt that are not dischargeable in consumer bankruptcy cases, there are many forms of commonly held debt that can be discharged in your bankruptcy case. If you have questions, you should always seek advice from a bankruptcy lawyer who can help you. In the meantime, the following are examples of some of the most common types of debt that are dischargeable in personal bankruptcy cases under the U.S. Bankruptcy Code.

Credit Card Debt

Did you know that more than 191 million Americans currently have credit cards and that millions of households are currently carrying tens of thousands of dollars in credit card debt? According to Debt.org, credit card debt is one of the most common forms of consumer debt, and it is nearly always dischargeable in a bankruptcy case. While there are some exceptions when a consumer has engaged in bankruptcy fraud (such as by charging up a credit card with the knowledge that she or he will soon be seeking a debt discharge through Chapter 7 bankruptcy), you should be able to expect that credit card debt can be discharged.

Medical Debt

Medical debt is among the most common forms of debt in America, and it is a frequent reason for individuals and married couples to file for bankruptcy. Medical debt can be debilitating, and it often occurs when consumers are not anticipating extensive medical bills. The good news is that medical debt is commonly dischargeable in U.S. bankruptcy cases.

Personal Loans

While personal loans are not as common as credit card debt or medical debt, there are many American households that are struggling to repay debt from personal loans. In many bankruptcy cases, personal loan debt can be discharged in a bankruptcy proceeding. Other lines of credit that operate similarly to personal loans are also frequently dischargeable in Chapter 7 and Chapter 13 bankruptcy cases.

Student Loans

Although there are many misconceptions about student loans and bankruptcy, it is critical to know that student loans can in fact be discharged in consumer bankruptcy cases. You will likely need to go through a lengthier process with student loan debt to show that the debt should be discharged than with some of the other types of debt we have discussed above. However, in the end, you may in fact be eligible to have your student loan debt discharged.

Seek Advice From an Oak Park Bankruptcy Lawyer

Anytime you have questions about consumer bankruptcy or whether your debts are eligible for discharge, you should seek advice from our dedicated Oak Park consumer bankruptcy attorneys. We know how complicated the U.S. bankruptcy process can be, and we know how critical it is to have an experienced lawyer on your side. Do not hesitate to get in touch with our firm to learn more about how we can help you. Contact the Emerson Law Firm to learn more.



See Related Blog Posts:

Can I Back Out of a Bankruptcy Case if I Change My Mind?

Actions to Avoid Before You File for Bankruptcy






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