Chapter 7 Bankruptcy is called a "liquidation" bankruptcy. Chapter 7 bankruptcy is designed to help people who are unable to pay their existing debts. The purpose of filing a Chapter 7 case is to obtain a discharge
of your existing debts. When you file for Chapter 7 bankruptcy you can wipe out debt from:
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- Credit cards
- Personal loans
- Certain tax debts
- Parking tickets
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- Store cards
- Checking account overdrafts
- Medical and dental bills
- Social Security and unemployment overpayments
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Unfortunately, not every debt can be wiped out. Debts that are not wiped out include:
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- Most taxes
- Debts obtained through fraud or deception
- Most student loans
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- Child support and alimony
- Court-ordered fines and criminal restitution
- Debts for personal injuries caused by driving while intoxicated or taking
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