| Dischargeable debts are those debts that can be discharged through bankruptcy proceedings. A debtor is no longer personally liable to pay for dischargeable debts after the bankruptcy proceedings are concluded.
Dischargeable Debts The following debts are dischargeable: * back rent * utility bills * some court judgments * most credit and charge card bills * department store and gasoline company bills * loans from family and friends * newspaper and magazine subscriptions * legal, medical, and accounting bills * most unsecured loans * repossession deficiencies * auto accident claims * judgments * business debts * leases * guaranties * negligence claims * tax penalties over three years old * income taxes that are not priority taxes Dischargeable Debts Unless Objected to by Creditor The following four categories of debts are dischargeable unless a creditor objects to dischargeability: * debts incurred on the basis of fraudulent acts * debts from willful or malicious injury to another or another's property, including assault, battery, false imprisonment, libel, and slander * debts from larceny, breach of trust or embezzlement * debts arising out of a marital settlement agreement or divorce decree that are not otherwise automatically nondischargeable as support or alimony. The court will enter an order granting a "discharge" of all dischargeable debts that existed on the date the case was filed if creditors have not filed a suit to stop a debtor from getting out from under debts within 60 days of the Section 341 meeting of creditors. It is possible to obtain a discharge even while there are pending disputes as to whether specific debts should be paid. Whether the debt that is the subject of a dispute will be discharged or not depends on the outcome of a hearing. |