It is much easier to describe the type of debts that are generally not dischargeable. Most unsecured debt or debt in which there is not a lien attached to something you own is dischargeable. That is, credit card debt and medical bills (which comprise the bulk of people’s financial isses) are dischargeable. Secured debts such as car loans and mortgages are dischargeable too but you will still have to pay the debts associated with property associated with the loan if you want to keep that property. The most common question I get is “will I be able to keep my car and my house”? The answer to that is yes, if we can figure out a way to pay for them. If you happen to be behind on those payments there are ways to get caught up and allow you to keep them. If you are current on those payments then there shouldn’t be any reason that you can’t keep your car and house. However, if you want to walk away from either of those obligations then you are perfectly able to do that too, without any financial recourse.
As I mentioned before, there are some debts that aren’t usually dischargeable. For the most part student loans are not dischargeable. Neither are recent tax obligations (see my tax page). Child support and alimony are never dischargeable. Debt’s related to some bad or illegal acts you may have done aren’t dischargeable. For a complete list of all non-dischargeable debts click here.
Additionally, there are some debts that may not be dischargeable in a Chapter 7 but are dischargeable in a Chapter 13. Please contact me if you have any specific debts that you would like to know whether they are dischargeable or not.