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Payment of the debt is secured by collateral. Common examples of unsecured consumer debts include medical bills, utility bills, back rent, personal loans, some government benefit overpayments, and credit card charges. These unsecured debts are dischargeable in Chapter 7 bankruptcy.
If you file a bankruptcy case under Chapter 7, not all debts are eliminated (or "discharged") once the bankruptcy process is complete. Generally speaking, in a Chapter 7 proceeding, the following types of debts are not discharged:Debts that were non-dischargeable in a prior bankruptcy.
Secured claims are claims for debts that are secured by an interest in property. A secured creditor can take that property, the collateral, if you default on the debt.
Alimony and child support. Certain unpaid taxes, such as tax liens. Debts for willful and malicious injury to another person or property. Debts for death or personal injury caused by the debtor's operation of a motor vehicle while intoxicated from alcohol or other substances.
In Chapter 7 bankruptcy, most types of unsecured, nonpriority debt will be discharged (wiped out) through the bankruptcy.Utility bills are lumped into this type of debt, along with credit cards and medical debt. At the end of your Chapter 7 case, your outstanding utility debt will be discharged.
When you file your petition for Chapter 13, all creditors you list will receive notice that you are filing bankruptcy. Then, they have 90 days to file a proof of claim after the meeting of creditors. The only exception is government bodies, which have 180 days.
You must list all debts on your Chapter 7 bankruptcy schedules without exceptioneven if you think they won't get wiped out by your discharge. If you leave off a debt, you run the risk of remaining responsible for it.
Bankruptcy rules require you to list all of your creditors in your schedules. If you do not, then the omitted debt might not be discharged.A no asset case means that you do not have property that the trustee could take and sell off to pay your creditors. The majority of Chapter 7 bankruptcies are no-asset cases.
Nondischargeable debt is a type of debt that cannot be eliminated through a bankruptcy proceeding. Such debts include, but are not limited to, student loans; most federal, state, and local taxes; money borrowed on a credit card to pay those taxes; and child support and alimony.