Getting Debts Discharged in a No Asset Chapter 7 Case

Getting debts discharged in a no asset chapter 7 bankruptcy filing depends on the nature of the debt. If you have a majority of debts that are consumer in nature and you have no assets for liquidation, you'll have an easier time of seeing your way through to a discharge.

Successfully Discharging Debts

It's important to know what debts can and cannot be discharged in order to successfully complete your bankruptcy under chapter 7.

Debts that can be discharged

• Loans. Any loan that you personally guaranteed is eligible.
• Credit cards. All consumer credit card debts can be cleared.
• Medical bills. Many people with large six figure medical debts are using bankruptcy to clear them.
• Judgments. These can be eliminated if a creditor has sued and obtained a judgment against you.
• Tax penalties more than three years old and certain types of income taxes also three years old.

Debts that cannot be discharged

• Child support. If you are paying alimony or child support, bankruptcy will not relieve you of the obligation.
• Student loans. Until the laws change, there is no discharging of student debts through bankruptcy. They must be repaid.
• Taxes less than two years old.
• Debts that are not listed in your schedules. This is why it's very important to list all debts you want to discharge. If they're not listed, they will not be affected by bankruptcy.

Make No Assumptions About Discharge

Chapter 7 bankruptcy will help eliminate a majority of your debts. It's important to make sure that what you're looking to relieve yourself of is allowable under the rules. Don't waste your time if your financial problems fall under those that cannot be discharged. It will only waste your time and your money.

Hiring a Bankruptcy Lawyer

An experienced bankruptcy lawyer will know the ins and outs of what can be discharged in no asset chapter 7 bankruptcy. If you're in a life situation where you own nothing of any value, rent instead of own and have no interests in any kind of property, chapter 7 is the right way to go. Your lawyer will ensure that it moves through the court system to discharge as smoothly as possible.