What debts are not forgiven under Chapter 7?

Most consumer debt is dischargeable in bankruptcy. Chapter 7 bankruptcy wipes out medical bills, personal loans, credit card debt, and most other unsecured debt. Debt that is related to some kind of “bad act” like causing someone injury or lying on a credit application can’t be wiped out.

What happens if your Chapter 7 is denied?

Having your Chapter 7 bankruptcy denied can have serious consequences. You will become immediately liable for all your debts. In the case of fraud, the trustee may also be able to administer non-exempt assets, which means you could lose your property and still owe your debts.

How to get rid of credit card debt in Chapter 7?

In most cases, you can get rid of credit card debt in Chapter 7 bankruptcy. If you use a single credit card to buy more than $675 worth of luxury goods or services within 90 days of filing for bankruptcy, the debt is presumed to be nondischargeable.

What happens to a lien in Chapter 7 bankruptcy?

If the creditor believes the amount owed is large enough to justify the cost of litigation, the creditor will file a civil lawsuit. If the borrower doesn’t respond, the court will issue a “default” judgment, and the creditor will automatically win.

Can a credit card debt put a lien on my house?

If you don’t pay your debt, then the creditor can file a lawsuit and get a “judicial lien” which will allow them to have your property sold according to state law. A lien can mean that the creditor might be able to foreclose/sell your property to satisfy the unpaid debt…. even your home or your car, depending on your state’s exemption laws.

What happens if you have a judgment lien on Your House?

When homes show judgment liens on their title histories, title companies often refuse to clear those titles so those homes can sell. Additionally, judgments may still be found on the major credit bureaus’ records even after their underlying debt is discharged in bankruptcy.