Debts That May Not Be Discharged in Chapter 7

If you are filing for Chapter 7 bankruptcy, you may have questions about which debts you can have discharged. At Ledford, Wu & Borges, LLC, our attorneys can help you understand which debts can be discharged and which you will still be responsible for. With more than 100 years' combined experience in bankruptcy law, we are prepared to help you reach your debt relief goals.

Is filing bankruptcy right for you? Contact a Chicago bankruptcy lawyer by e-mail or call 312-574-3327 for a free consultation at any of our seven office locations. Our Chicago Chapter 7 bankruptcy attorneys are here to protect your rights.

These Debts May or May Not Be Discharged

Filing for Chapter 7 bankruptcy essentially "eliminates" your debt, discharging it completely. Certain debts, however, may not be discharged if certain circumstances apply.

  • Student loans: If you have student loans and file for bankruptcy, they can only be discharged if you are disabled or have another "undue hardship" that would qualify them for discharge.
  • Tax debts: Some tax debts can be discharged and some cannot. Tax debts that are older than three years old generally can be discharged.
  • Overpayment of Governmental Benefits: While generally dischargeable, governmental units can, and sometimes do, object to these debts being discharged. In these circumstances, it's even more important to have an experienced attorney.

There are other debts you may choose to keep. For instance, if you have a car loan and wish to keep your car, you may sign a reaffirmation agreement. This will allow you to keep your vehicle and the debt associated with it as long as you stay current on payments.

No two situations are alike. To get an accurate understanding of what debts you can keep and which you can discard, it is important to speak with an experienced Chapter 7 bankruptcy lawyer. Our attorneys will work with you personally to answer your questions and help you through all stages of the process.

Contact The Chicago Bankruptcy Attorneys at Ledford, Wu & Borges, LLC

Contact our offices online or call 312-574-3327 to speak with an experienced Illinois Chapter 7 bankruptcy lawyer. We are ready to help.

Ledford, Wu & Borges, LLC has offices in Downtown Chicago, the South Side of Chicago, Homewood, North Riverside/Berwyn, the Northwest Side and the Southeast Side.