Chapter 7 bankruptcy is for persons who want to wipe out unsecured debts and who want a fresh start. Chapter 7 was enacted to allow persons who are hopelessly burdened by debt to start fresh. When you file a chapter 7, in most cases you are able to keep most of your property because it is "exempt". In some cases property is not exempt. You should consult with an attorney to discuss what property is or is not exempt. If you want to keep a car or home that is financed you must keep current on those payments.

Although most of your debts will be discharged some will not. The following debts may not be discharged: child support, alimony, fines, some taxes, most student loans, debts not listed on your bankruptcy petition, loans you received by knowingly giving false information to a creditor, debts resulting from "willful and malicious" harm, loans secured by real or personal property (unless the creditor repossess, forecloses and resells the property).

When you file a Chapter 7, most of your unsecured credit cards, medical bills, utility bills, some overdraft charges and bad checks, as well as balances on foreclosures and repossessions are discharged or wiped out.  Although occasionally taxes and student loans are forgiven, the situations where these debts can be discharged are somewhat rare.  You should consult a bankruptcy attorney for specific information relating to the discharge of taxes and student loans.  Below is a list of debts that are not dischargeable in a Chapter 7 Bankruptcy.  It is important to note that the law is constantly changing and no attorney can guarantee that any single debt will be forgiven.

Debts that are not discharged in a Chapter 7: 

1. Debts incurred through fraud, such as lying about your income on a credit application;
2. Child and spousal support;
3. Debts incurred as a property settlement in a divorce;
4. Most Taxes;
5. Most Student Loans;
6. Debts that you forgot to list on your bankruptcy papers;
7. Debts for personal injury and death caused by your driving a motor vehicle while intoxicated;
8. Debts you never intended to pay back (you took on the debt near in time to filing bankruptcy, you took a cash advance and never paid any money back, debt taken on after meeting with a bankruptcy attorney);
9. Debts for personal injury and property damage incurred through willful or malicious harm; and
10. Criminal fines and penalties.

There are other debts that may not be dischargeable.  Consult your attorney to see whether a specific debt is dischargeable.  No attorney should ever guarantee the discharge of a specific debt.