Dischargeable debt is debt that is completely wiped out when you file Chapter 7 bankruptcy. While all of your accumulated debt is not eligible to be classified as “dischargeable debt” it is an important consideration in deciding whether or not to file for bankruptcy.

Dischargeable debt releases individual debtors from being legally responsible for paying back a debt and prevents the creditor whom the debt is owed from taking any collections from the debtor. Here are a few obligations that do not qualify as dischargeable debt.

Secured debt, such as personal property or real estate, which is secured with an interest in the property itself, is not eliminated when you file bankruptcy. What I mean by this is the secured creditor may recover the property even though the legal obligation to pay the debt may be discharged. In other words, you could lose your home. Student loans are another example of what cannot be classified as dischargeable debt. The reason student loans cannot be discharged are solely due to operation of the law, and not because of interest in a debtor’s assets.

Although not all debts can be discharged through the filing of a Chapter 7 bankruptcy, the majority of a person’s debt will qualify as dischargeable debt, more specifically, only debts that arose before the date you filed for bankruptcy will be discharged. This means that you the debtor are responsible for any debt that incurs after filing a petition and before you receive discharge notification.

Here is a list of commonly discharged debt. Credit card charges, Collection agency accounts, Medical bills, Personal loans, Utility bills , Auto accident claims, Money owed under lease agreements, Civil court judgments, Revolving charge accounts, Social security over-payments, and more.

If you have any further questions regarding which of your debts are eligible to be discharged contact a bankruptcy attorney today.

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