Not All Debts are Dischargeable

When you file for Chapter 7 bankruptcy, you will list all of your outstanding debts. The list of debts may include student loans or tax debt. But when the Chapter 7 bankruptcy is discharged, some of your debts may remain. That is because the discharge only applies to “dischargeable” debts, not to everything that was on the list.

Dischargeable debt will probably not include debts such as student loans and taxes owed. The reason for this is that student loans and tax debts are monies owed to the federal government, and the bankruptcy court cannot relieve a debt to the government without a special type of bankruptcy proceeding.

If part of your Chapter 7 bankruptcy debt is from student loans or back taxes, you will want to consult with an experienced bankruptcy lawyer. In Arizona, a reputable choice is the Frutkin Lawfirm, PLC. The bankruptcy attorneys there can help you understand which types of debts are dischargeable and what steps must be taken to relieve the debt of student loans or back taxes.