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Can all debts be discharged in Chapter 7 bankruptcy?

As you learn more about Chapter 7 bankruptcy, it won't be long before you turn your attention to the types of debt that you can discharge.

If you qualify for Chapter 7, you may soon realize that it's the best way to improve your finances and gain a fresh start in the future.

Here is something you need to remember: Some types of debt remain in place even after you file Chapter 7 bankruptcy.

It would be nice if all debts were eliminated, but this isn't the way the process works. Instead, here are some of the many types of debts that can remain in place despite your filing:

-- Student loans, unless you can prove that repayment would cause an undue hardship

-- Local, state, and federal taxes

-- Alimony and child support

-- Court fees

-- Any government imposed penalties, fines, or restitution

-- Debts resulting from wrongful death or personal injury damages

-- Certain types of debts associated with HOA fees and dues

Although you will find that these debts will remain in place after a Chapter 7 bankruptcy filing, there are many others that you may be able to eliminate.

For example, Chapter 7 bankruptcy can help you clear credit card debt. This is one of the most common reasons to file.

If you have any questions about Chapter 7 bankruptcy, including what you are and are not able to discharge, it is important to learn more before taking the next step in the process. You don't want to file, just to find out later on that you are unable to eliminate all your debt.

Since there are so many challenges and questions regarding bankruptcy, it never hurts to consult with an attorney. When you take this step, you can go into the process with a clear mind and an idea of what you need to do to put this in the past as soon as possible.

As long as you understand the finer details of Chapter 7 bankruptcy, including what you can discharge, it is much easier to make a decision as to what you should do next. If nothing else, you should weigh the pros and cons of bankruptcy to ensure that you are making a confident decision.

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