Discharge Consumer Debt

A discharge of consumer debts is a court order that removes certain debts, and eliminates the debtor’s responsibility to pay certain creditors.

In the case of consumer debts of and individual or married couple, Chapter 7 bankruptcy may be used to discharge certain unsecured debts including:

  1. credit cards,
  2. medical debts, and in some cases
  3. federal and state income tax liabilities that have not been paid, along with their associated penalties. [1]Tax liabilities must be at least three years old, more recent tax liabilities are not eligible for discharge.

References

1 Tax liabilities must be at least three years old, more recent tax liabilities are not eligible for discharge