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.

Copyright 2012 LexisNexis, a division of Reed Elsevier Inc.