Which debts are dischargeable?
If the bankruptcy court grants a discharge in your Chapter 7 case, you are no longer legally obligated to pay most debts such as:
- credit card balances
- deficiencies on auto repossessions
- medical bills
- judgments
- and personal loans.
In order for debts to be discharged, they must exist on the date the bankruptcy case was filed and be properly listed in the bankruptcy.
In addition, creditors are prohibited from attempted to collect a debt that has been discharge. Therefore, creditors cannot contact the debtor by mail, phone, or otherwise, file or continue a lawsuit, or attach wages or other property. However, creditors may have the right to enforce valid liens , such as mortgages and security interests in automobiles, which means that the creditor can take back the secured property if you do not reaffirm and redeem the debt, or if the lien is not avoided.
