Many people imagine that after filing for personal bankruptcy that they will be left with a perfectly clean financial slate. For some this is a reality and after their hearings end they are able to achieve a fresh financial start. However, other Tennessee residents may find that even after successfully completing a Chapter 7 bankruptcy process they have some debts still outstanding against them.
While many debts are dischargeable under the Chapter 7 bankruptcy process, not all will be eliminated once the legal proceedings wrap up. For example, if a debtor fails to include a debt or creditor on the schedule of debts the person provided at the beginning of the bankruptcy, that debt or obligation may survive the process. Additionally, certain government-imposed costs, such as taxes, fees, fines and penalties may not be dischargeable under the Chapter 7 process.
Court-mandated obligations may also endure personal bankruptcy. If a filer is responsible for child support or alimony, any outstanding obligations related to those expenses may still exist once the bankruptcy process ends. Also, student loans are not always dischargeable in bankruptcy unless they impose an undue hardship on the debtor.
This post provides an incomplete list of the many debts and obligations that can survive a successful Chapter 7 bankruptcy process. Readers of this Tennessee bankruptcy law blog should not rely on it as legal advice and should consult with their private bankruptcy attorneys to better understand if any of these or the many other non-dischargeable debts will impact the resolutions of their Chapter 7 filings. Dischargeable debts can reduce a debtor's financial load through bankruptcy, but not all debts are capable of being wiped clean after the Chapter 7 liquidation process.