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