Dischargeable debts are those debts that can be discharged through bankruptcy proceedings. A debtor is no longer personally liable to pay for dischargeable debts after the bankruptcy proceedings are concluded.
The following debts are dischargeable:
- back rent
- utility bills
- some court judgments
- most credit and charge card bills
- department store and gasoline company bills
- loans from family and friends
- newspaper and magazine subscriptions
- legal, medical, and accounting bills
- most unsecured loans
- repossession deficiencies
- auto accident claims
- business debts
- negligence claims
- tax penalties over three years old
- income taxes that are not priority taxes
- Dischargeable Debts Unless Objected to by Creditor
- The following four categories of debts are dischargeable unless a creditor objects to dischargeability:
- debts incurred on the basis of fraudulent acts
- debts from willful or malicious injury to another or another’s property, including assault, battery, false imprisonment, libel, and slander
- debts from larceny, breach of trust or embezzlement
- debts arising out of a marital settlement agreement or divorce decree that are not otherwise automatically nondischargeable as support or alimony.
The court will enter an order granting a “discharge” of all dischargeable debts that existed on the date the case was filed if creditors have not filed a suit to stop a debtor from getting out from under debts within 60 days of the Section 341 meeting of creditors. It is possible to obtain a discharge even while there are pending disputes as to whether specific debts should be paid. Whether the debt that is the subject of a dispute will be discharged or not depends on the outcome of a hearing.