Bankruptcy is one of the legal ways to get out of financial trouble and start fresh. However, not all debts can be discharged in bankruptcy, and the rules and regulations regarding what can and cannot be discharged vary by state. For New Jersey residents, filing for chapter 7 bankruptcy can provide relief from various types of debts. In this blog, we'll take a closer look at which debts can and cannot typically be discharged in chapter 7 bankruptcy in New Jersey, and whether or not student debt is included.

Some debts that can be discharged in chapter 7 bankruptcy include credit card debt, medical bills, personal loans, and payday loans. However, it is important to note that some debts may not be discharged, such as taxes owed to the government, child support, and alimony payments. It is always best to consult with an experienced bankruptcy attorney to determine which debts can and cannot be discharged in your specific circumstances.

When it comes to student debt, it can be challenging to discharge through bankruptcy. To discharge student loans under chapter 7 bankruptcy, you will need to demonstrate "undue hardship." This means that you must prove that paying back the debt would impose an undue hardship on you and your dependents. However, it is extremely difficult to prove undue hardship, and most people are not successful in doing so.

Another important thing to note is that debts accrued through fraud, willful or malicious injury or damages, or fines owed to government agencies cannot be discharged through bankruptcy. Examples of these include debt incurred from a DUI or criminal restitution.

In addition to filing for bankruptcy, it's important to note that you may be able to pursue other options to manage your debt, such as negotiating with creditors or seeking credit counseling. An experienced bankruptcy attorney can help you explore all of your options.

Filing for chapter 7 bankruptcy can be a daunting process, but it can provide relief from overwhelming debt. However, it is important to understand which debts can be discharged and which cannot. If you are considering filing for bankruptcy, the team at LAWFIRMNAME can help. We have years of experience assisting the SERVICE-AREA public with bankruptcy matters and are dedicated to helping you achieve financial freedom. Contact us today to schedule a consultation.