Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709
${site.data.firmName}${SEMFirmNameAlt}

What can be discharged in a Chapter 7 bankruptcy?

The discharge in a Chapter 7 bankruptcy wipes out many types of debt, including unsecured credit card debt, utility bills, back rent, medical bills, uninsured car accident judgments, amounts owed on repossessed or surrendered vehicles, and various other unsecured debts. The discharge accomplishes this by relieving the debtor of personal liability for these debts and preventing creditors from ever pursuing these debts in the future.

However, there are certain types of debt that won't be discharged in a Chapter 7. These debts include most tax debt, criminal restitution, domestic support obligations such as child support, maintenance, and alimony, most student loans, debts related to drunk driving, and debts incurred by fraud.

Secured debts such as car loans and mortgages can also be discharged in a Chapter 7. This means that if you do not want your car or house you can walk away from these debts in a Chapter 7 bankruptcy. However, valid liens survive the discharge and remain in effect after the bankruptcy. This means secured creditors can still bring actions such as foreclosures and repossessions to enforce valid liens post-bankruptcy. Thus, in order to retain collateral such as a house or a car, Chapter 7 debtors must either reaffirm secured debt or make arrangements to redeem the collateral.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Free Case Evaluation

* indicates required field

Miller & Miller Law, LLC
  • VISA
  • Master Cards
  • Discover
Milwaukee Office map Madison Office map Kenosha Office map

633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Office

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Office

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Appleton Office

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Office

Glendale Office
6001 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Office

Fax: 414-277-1303 - We also have offices in Appleton, Glendale and Brookfield to better serve you.