Law Offices of Robert M. Kaplan, P.C.
Schaumburg Family Law Attorney

What debts are forgiven under Chapter 7 bankruptcy?

Chapter 7 bankruptcy, commonly referred to as “liquidation bankruptcy,” seeks to discharge most of your individual debts. 

Debts That Chapter 7 Bankruptcy Can Forgive

Typically, Chapter 7 bankruptcy forgives most unsecured consumer debts that don’t have collateral (such as a house or car) backing them up. Common debts that fall into this category include:

  • Credit card debt
  • Past-due rent
  • Outstanding medical bills 
  • Utility bills
  • Personal loans, taken out for projects like home remodels, auto repairs, or large purchases
  • Some government benefits 
  • Promissory notes

Debts That Chapter 7 Bankruptcy Cannot Forgive

Debts, including unsecured debts, that are not dischargeable during a Chapter 7 bankruptcy filing include:

  • Most student loans
  • Child support and alimony
  • Some unpaid taxes
  • HOA fees
  • Previous court fees
  • Unsecured debts not listed in your bankruptcy filing
  • Debts that you owe as a result of breaking the law 

Depending on your personal circumstances, one type of bankruptcy filing may be better for you than another. Here at the law offices of Robert M. Kaplan, we help people every day with debt relief in Schaumburg, IL. 

Contact Our Schaumburg Law Firm

If you would like to speak with a seasoned attorney who can represent you throughout your Chapter 7 bankruptcy filing, or if you need to retain an attorney to answer your legal questions, give us a call today to schedule your free initial consultation

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