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.

Dischargeable Debts

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
  • judgments
  • business debts
  • leases
  • guaranties
  • 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.