The aim of both Chapter 7 and Chapter 13 bankruptcy would be to get a вЂњdischargeвЂќ of debts. In the event that bankruptcy court discharges your financial situation in bankruptcy, this means you will be no further be held individually accountable for these debts. Many personal debt, including medical bills and credit card debt, is dischargeable. Specific debts, but, are non-dischargeable, meaning they can not be damaged through bankruptcy. They are debts that Congress has determined really should not be in a position to be discharged for public policy reasons.
You can find 19 kinds of non-dischargeable financial obligation. Or in other words, once you be given a release of the customer debts, creditors will be able to still gather these types of debts. Some debts that are non-dischargeable maybe maybe maybe maybe not at the mercy of a hearing, while other non-dischargeable debts are going to be released in case a creditor will not challenge that they're dischargeable.