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Chapter 7 bankruptcy and the discharge of debts

Once the decision to file for bankruptcy has been made, there is generally a feeling of immense relief. This is then often followed by some uncertainty and questions that still need to be answered. The Kentucky resident is often still concerned about exactly which debts will be discharged and which ones will remain as a part of the Chapter 7 bankruptcy.

Many times, there are specific items that the individual is interested in retaining. As a part of the bankruptcy proceeding, items which have been used to secure debts will most likely be turned over to the bankruptcy trustee or the lender; however, the individual may wish to retain an item such as a car. In this case, the individual would then reaffirm the debt with the creditor. This action will need to be completed prior to debts being discharged. Additionally, the individual will need to have sufficient income to make the required payments on the reaffirmed debt.

The individual can expect most debts to be discharged as a part of the Chapter 7 bankruptcy proceedings. There are, however, certain debts that are generally not discharged. These debts include alimony, child support, most taxes and student loans. In addition, there are other debts having to do personal injury and/or criminal activity that are not dischargeable.

For many Kentucky residents, the decision to file for Chapter 7 bankruptcy is half of the battle. Once this decision has been made, the individual, along with his or her attorney, will want to review the assets that will be liquidated. It is likely that the individual will want to attempt to retain one or more of these items.

Source:, "Chapter 7: Debt Discharge", Jan. 22, 2017

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