Dealing with debt is an issue some California consumers try to avoid through filing for bankruptcy. There are some cases in which this strategy, though costly, may work out for the best. However, there are some types of debt which can’t be done away via this tactic. Here are some things you need to know about discharging debts.
Chapter 7 can discharge credit card debt
One of the primary reasons for a person to file a Chapter 7 bankruptcy will be to discharge their credit card debt. This is one of the most pervasive and long lasting forms of debt. If you are able to successfully file for Chapter 7, it will discharge all of your credit card debt.
Chapter 7 can also discharge personal loans, promissory notes, and medical debt.
Chapter 13 bankruptcy plans do not normally end with the full discharge of your credit card debt. This is a type of arrangement under which your debts are reorganized. The result will be a plan under which you pay back at least a portion of your debt. After you have paid this off, the rest can be discharged.
Alimony and child support can’t be discharged
While it is possible to discharge some forms of debt through bankruptcy, this does not apply to all of them. Certain debts, such as alimony, child support, most types of taxes, and almost all tax liens, can never be discharged. This also applies to penalties that were levied on you by government agencies.
If you have debts that resulted from a personal injury judgment against you for drunk driving, these will not be discharged. If you have debt that resulted from a student loan, it will be almost impossible to discharge. You can do if you can prove personal hardship.