What debts are discharged in Chapter 7 bankruptcy?
When a court grants you a final Chapter 7 discharge, the vast majority of debts are automatically wiped out.
These debts include:
- Credit card debts
- Personal loans
- Money owed to your landlord for unpaid rent and penalties
- Medical bills
- Personal guarantees
- Lawsuit judgments, including judgment liens on your home less than Nevada’s $550,000 homestead exemption. Note, a motion to avoid judicial lien must be filed to remove the judicial lien from real property. A motion to avoid judicial lien is typically an extra charge
There are a few debts which Chapter 7 cannot erase however. These debts include:
- Debts which a creditor successfully objects to being discharged.
- Student loans.
- Debts related to driving while intoxicated.
- Child support and other debts arising from divorce.
- Most tax debts (other than income tax debts for taxes due more than three years ago and for which you filed a return more than two years ago).
- Government fines.
- Court ordered restitution.
- Debts for loans from a retirement plan.
- Homeowners association fees.