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Dischargeable Debts: What Bankruptcy Can Get Rid Of

There are many reasons why someone would need to file for bankruptcy, and the most common reason is the need to get rid of debt. One of the biggest benefits of bankruptcy is the ability to permanently get rid of debts, but not all debts can be discharged by the process. Our Hawaii bankruptcy team outlines which debts you can pursue a discharge for below.

Dischargeable Debts

Each chapter of bankruptcy is different and is designed to fulfill separate financial needs, and this is no different when it comes to debts that can be discharged.

Chapter 7

Chapter 7 filers will typically receive their discharge after their bankruptcy is completed. They are granted by the court 60 days after the Meeting of Creditors, which occurs around four months after filing a bankruptcy petition. Here is a list of the most common debts that can be forgiven under Chapter 7:

  • Credit card debt
  • Medical bills
  • Personal loans
  • Promissory notes
  • Obligations under contracts and leases
  • Lawsuit judgments against you

Once you have received a discharge for any of these debts, you are relieved of any responsibility of paying them back, and your creditor(s) will no longer hold you responsible for them.

Chapter 13

Although the primary goal of Chapter 13 bankruptcies is not necessarily to gain a discharge, filers may still be granted one. There are instances, however, when a filer may need to convert their case to a Chapter 7 bankruptcy in order to get the relief they need. Here are some debts that can be discharged by Chapter 13 that are unavailable to Chapter 7 filers:

  • Court fees
  • Marital debts (excluding child support and alimony)
  • Debts from a retirement plan loan
  • Condo, coop, and HOA fees
  • Debts that could not be discharged by a previous bankruptcy case

Get in Touch With Law Offices of Blake Goodman Today

We understand how stressful finances can be. We have a team dedicated to providing you with compassionate and personalized services to help guide you to financial freedom, and we are only a call away.

If you would like to learn more about how bankruptcy can get rid of your debts, contact us today through our website or give us a call at (808) 518-4844 to schedule your consultation today.