Dischargeable Debts in Chapter 7 Bankruptcy Cases in New York and New Jersey
In a Chapter 7 Bankruptcy case the Bankruptcy Court will grant a discharge from your debts. A discharge in bankruptcy means that your personal liability for a debt is eliminated.
Typically, in a Chapter 7 Bankruptcy case, the following types of debts are dischargeable:
Credit Cards
Personal Loans
Business Debts
Judgments
Medical Bills
Guaranties
Auto accident claims
Negligence Claims
Leases
Repossession Deficiencies
Tax penalties over 3 years old
Thus, if the Bankruptcy Court grants you a discharge in your Chapter 7 bankruptcy case, you will not be responsible for paying the discharged debts, and your creditors cannot collect those discharged debts.
It is very important to include all your liabilities in your bankruptcy petition, as those liabilities omitted from the petition will not be discharged by the Bankruptcy Court.
