Leventhal Law Group, P.C., in Woodland Hills, California, serves clients in the San
Fernando Valley area. Communities include Northridge, Van Nuys, North Hollywood,
Encino, Santa Clarita, Valencia, Palmdale, Lancaster, Mission Hills, Thousand Oaks,
Simi Valley, Calabasas, Canoga Park, Chatsworth, Porter Ranch, Reseda, Tarzana, Malibu
and counties that include Los Angeles County and Ventura County.
What Debts Can Be Discharged? | Woodland Hills Lawyer
Information about Dischargeable Debt in Bankruptcy
If you are wondering what debts can be discharged under a Chapter 7 bankruptcy, you
are not alone. There is a great deal of confusion about bankruptcy, especially since
bankruptcy reform was enacted in 2005. The good news: filing bankruptcy is still
an excellent choice for people overwhelmed by debt, because they can discharge most
of their debts and start again.
At the Leventhal Law Group, P.C., in Woodland Hills, California, I assist people
with Chapter 7 bankruptcy filings. This means that I answer their questions about
the process, help them complete required paperwork, and represent them during 341
hearings with creditors. I am often asked about the debts that may be discharged
in a Chapter 7 bankruptcy.
Call a Los Angeles-area attorney at the Leventhal Law Group, P.C. at 818-347-5800
for a free initial consultation.
Exceptions to a Discharge of Debt
Because almost all debts can be discharged in a Chapter 7 bankruptcy, it's easier
to list the exceptions to the rule. The following is a list of debts that usually
cannot be discharged:
Certain types of unpaid taxes and fines
Child support and alimony arrearages
Criminal penalties, including fines and restitution
Personal injury settlements, including DWI accident debts
Government-funded or guaranteed student loan payments
Debts to condo or co-op housing fees
Debts to specific types of tax-advantaged retirement plans
A few of these may be dischargeable in a Chapter 13 bankruptcy (unlike a Chapter
7), including, debts arising from delinquent tax payments, criminal penalties, and
debts related to a property settlement in divorce.
What Can Be Discharged?
Generally speaking, all other debts can be discharged. Credit card debt, personal
loans, medical bills, car accident claims, leases, business debts, judgments, and
some old taxes and tax penalties are dischargeable. Secured debts, such as a car
loan or a home mortgage, are often settled by repossession of the asset or foreclosure
on the house; the remainder of the debt is usually discharged. In some cases, debts
may be settled via negotiation with creditors instead of discharged through bankruptcy.