Worth Fighting For: Debts That May Be Discharged in Chapter 7
Chapter 7 bankruptcy offers in most cases total debt discharge, enabling people who were struggling with debt to start again with a fresh beginning. However, some debts are not dischargeable. Depending on your circumstances, some may or may not be dischargeable.
When is it worth to fight?In some cases, you may need to prove to the bankruptcy court that your debt should, indeed, be discharged under Chapter 7. When your debt falls into a grey area between not dischargeable and dischargeable, an experienced attorney can make all the difference. Take into account the following examples:
Government benefit overpaymentsThis type of debt is dischargeable unless the debtor has obtained the benefits through fraud. If you have been accused of fraud concerning debt, an attorney can argue your case in the bankruptcy court.
Student loansIf you are experiencing "undue hardship" such as a disability, your student loan debt may be dischargeable, but you will have to prove it to the bankruptcy court.
Debt incurred due to injury to another personIf you caused harm to another person, a lawsuit judgment against you might not be dischargeable. However, fighting the allegation could guarantee that you can get rid of the debt through Chapter 7.
Having an attorney on your side who knows bankruptcy law and can effectively argue your case in or out of court is especially important in these types of cases.