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Why didn't Chapter 7 bankruptcy eliminate all of my debts?

The goal of any bankruptcy process is for a debtor to emerge from the process without the burdensome debts they carried prior to filing for bankruptcy protection. Whether they file for Chapter 13 bankruptcy and develop a repayment plan to satisfy their creditors or Chapter 7 and use liquidation to pay down their obligations, debtors hope to attain discharge and find financial freedom.

A Tennessee resident may find, however, that after attaining discharge through the Chapter 7 bankruptcy process certain debts still exist as obligations for them. While Chapter 7 bankruptcy does grant a debtor a wide range of support to eliminate certain obligations, others live through the process and remain the responsibility of the individual who filed for Chapter 7.

For example, a person may be responsible for an otherwise qualifying debt if they fail to include it in their bankruptcy action. A debt that is not included in a Chapter 7 filing is not subject to its discharge. Also, judicially and legally imposed costs, such as taxes, support orders and court fines cannot be discharged in Chapter 7 bankruptcy. These expenses must be paid by the individual who incurred them.

Finally, any debt that survived a prior bankruptcy filing because the debtor engaged in fraud cannot be discharged in a subsequent filing. While the information provided in this post may help readers better understand the types of debts that survive Chapter 7 discharge, they should be aware that the list is not comprehensive. To attain a better understanding of Chapter 7 bankruptcy, its requirements and what debtors may carry with them out of the process, our readers may want to get more information about their own unique circumstances.

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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